World last week: Warning about 'time bombs'

WTO ANGRY US

Dispute Resolution Council ofWTOA panel of three trade experts declared Washington in violation of international trade laws in 2018. The ruling concerned only a few of the measures.taxThe US has imposed tariffs on China, including $34 billion worth of goods in June 2018, and about $200 billion in September 2018. The US has issued several rounds of tariffs on a total of about $370 billion worth of Chinese imports, leading to a trade war between the world's two largest economies.

US President Donald Trump and Chinese Vice Premier Liu He hold a press conference before signing the US-China phase one trade deal in January 2020.

The panel said countries have limited justification for imposing tariffs that affect another country. But the United States has failed to demonstrate that its provisional measures are justified. The panel backed China’s argument that the U.S. tariffs only apply to Chinese goods, putting Chinese goods at a disadvantage relative to similar products from other WTO members.

In response to the WTO ruling, China's Ministry of Commerce said it was fair and objective, and hoped the US would respect the ruling and the rules-based multilateral trading system. In 2018, China filed a complaint with the WTO asking the US to resolve the dispute.

Despite the new WTO rulingstand with China, but that is not a big deal for the White House. The Trump administration can appeal within the next 60 days. The US government has refused to nominate new judges to replace the outgoing judges on the WTO's seven-member appeals panel, which the parties have proposed, leaving the body without enough members to function. Therefore, the US appeal will invalidate the WTO panel's ruling and avoid enforcement.

Cargo containers at the port of Qingdao city, Shandong province, China. Photo: AFP

As for China, observers say this is a rare victory for Beijing over Washington at the WTO - an organization often seen as favoring the US in its dealings.trade dispute. Statistics from the Peterson Institute for International Economics show that in the past 16 years, the US has sued China at the WTO 23 times, of which it won 20 times. However, China will not be too happy about this victory and will not seek to use it to anger the US, given that Trump has expressed anger over the WTO ruling. Instead, Beijing will use the ruling for domestic propaganda purposes.

Tariffs have long been a versatile tool for President Trump. US Trade Representative Robert Lighthizer asserted that the US must be allowed to defend itself against unfair trade practices. The Trump administration will not allow China to use the WTO as a tool to take advantage of American workers, businesses, and farmers. Therefore, the WTO's move exacerbates the already tense relationship between the US and the organization. Shortly after the new ruling, President Trump announced that he would review the WTO action.

THERMOS BOMB EXPLODES

The European Parliament (EP) has rejected the results of the election.presidential electionin Belarus on August 9 with 574 votes in favor, 37 against and 82 abstentions, and allegations of fraud. When President Alexander Lukashenko leaves office on November 5, the EP will not recognize him as the leader of Belarus.

Belarusian President Alexander Lukashenko. Photo: AP

The EP also called on the 27 member states to impose EU economic sanctions on the leader “without delay.” While the EP’s vote is not legally binding, it carries political weight and influences how the EU invests in Belarus or provides financial assistance.

Alexander Lukashenko, who has been in power for 26 years,declare victoryin the presidential election that took place on August 9, causing a wave of fierce protests, even turning violent. The EU said the election results were unfair and called on the Belarusian leadership to open a dialogue with the opposition under the mediation of the Organization for Security and Cooperation in Europe (OSCE).

Tension betweenBelarus and EuropeThe bloc's foreign ministers, along with Josep Borrell, will meet with Belarusian opposition leader Svetlana Tikhanovskaya before a meeting to discuss sanctions against Minsk. In addition, the 17-member OSCE has appointed an independent expert group to investigate alleged human rights abuses and election fraud in Belarus.

Protests continue in the capital Minsk, Belarus. Photo: Reuters

However, diplomats said that EU sanctions against Belarus could not be implemented immediately, due to resistance from Cyprus, which is demanding measures against Turkey first in a dispute over natural gas drilling in the eastern Mediterranean. In response, Borrell warned that the EU’s credibility was at stake and urged member states to pass the sanctions, which require a 100% vote, before an EU summit in Brussels next weekend.

These rapid developments have Russian officials concerned about the possibility of a repeat of the Venezuelan crisis in Belarus. It should be remembered that the countries that do not recognize the results of the Venezuelan presidential election and support the self-proclaimed president have created major obstacles for this South American country to find a peaceful political solution. Russia believes that Europe will be at a disadvantage if the Venezuelan scenario is repeated in Belarus.

In a separate move, Russian President Vladimir Putin announced a $1.5 billion loan to Belarus during talks with President Lukashenko in Sochi (Russia) earlier this week. Russia also held joint military exercises with Belarus earlier this week. The financial support was strongly condemned by the Belarusian opposition, which warned that it would tarnish Russia's future relations with countries in the region.

During talks with President Lukashenko in Sochi, President Putin said Russia would provide $1.5 billion in aid to Belarus. Photo: Reuters

For his part, President Lukashenko protested the EP's decision, asserting that the election was held based on the country's Constitution and laws, and did not ask for recognition from anyone; at the same time, he called the EP's actions an aggression and "exploding a thermonuclear bomb". Amid growing security concerns, President Lukashenko decided to close the border with Poland and Lithuania. This decision was made after the Belarusian leader repeatedly emphasized that the wave of protests in the country was instigated by the West and criticism from the US and the EU increased.