World last week: Warning about 'time bombs'
(Baonghean.vn) - The World Trade Organization (WTO) has ruled that the additional tariffs imposed by the US on Chinese goods in 2018 violated international trade rules. This move has dealt a heavy blow not only to the US-China trade war, but also to the relationship between the US and the WTO. The European Parliament announced that Belarusian President Lukashenko will no longer be recognized as president starting in November when he leaves office. These are the outstanding international news of the past week.
WTO ANGRY THE 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 different 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.
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US President Donald Trump and Chinese Vice Premier Liu He hold a press conference before signing the US-China phase 1 trade deal in January 2020. |
The panel said countries have limited justifications for imposing tariffs that affect another country. However, the US has failed to demonstrate that such temporary measures are justified. Meanwhile, the panel supported China’s argument that the US tariffs only apply to Chinese goods, causing Chinese goods to lose their advantage over 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 it to resolve the dispute with the US regarding this matter.
Despite the new WTO rulingstand with China, but that is not too big a problem 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 proposed by the parties, leaving the body without enough active members. Therefore, the US appeal will invalidate the WTO panel's ruling and avoid enforcement.
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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 disputes. Statistics from the Peterson Institute for International Economics show that in the past 16 years, the US has sued China 23 times at the WTO, of which it won 20 times. However, China will not be too happy about this victory and will not try to use it to anger the US, in the context of Trump's anger at 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 this organization. Shortly after the new ruling, President Trump announced that he would review the WTO action.
THERMOSPO BOMB EXPLOSION
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.
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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.” Although 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 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.
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Protests continue in the capital Minsk, Belarus. Photo: Reuters |
However, diplomats said that EU sanctions against Belarus could not be implemented immediately, due to obstacles from Cyprus, which is demanding measures against Turkey first in a dispute over natural gas drilling in the eastern Mediterranean. In that situation, Borrell warned that the EU's credibility was at stake and urged member states to pass the sanctions, which require 100% unanimity, before the EU summit in Brussels next weekend.
These rapid developments have made Russian officials worry about the possibility of a repeat of the Venezuela 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. The Russian side believes that Europe will be at a disadvantage if the Venezuela 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. This financial support has been strongly condemned by the Belarusian opposition, which warned that this will tarnish Russia's future relations with countries in the region.
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At talks with President Lukashenko in Sochi, President Putin said Russia will provide $1.5 billion in aid to Belarus. Photo: Reuters |
For his part, in response to the EP's decision, President Lukashenko protested and affirmed 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". In response to 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 this country was fueled by the West and criticism from the US and the EU was increasing.