wto
Latest
New Zealand used NSA data to spy on rival trade leader candidates
Want to understand why far-reaching, poorly scrutinized spying programs are dangerous? Here's why. The Intercept and the New Zealand Herald have obtained a document showing that New Zealand used the US National Security Agency's XKeyscore surveillance system to spy on other countries' candidates for the World Trade Organization's director general role. The 2013 snooping campaign searched for keywords in communications that referenced New Zealand's own candidate (Minister of Trade Tim Groser, above), the competition and the WTO itself. Any relevant results were passed on to a "trade team" within the country's surveillance agency, the Government Communications Security Bureau, which is rather alarming when the leadership run had nothing to do with national security.
WTO ruling revives debate over China's rare earths trade
China suffered another setback at the WTO yesterday, thanks to a ruling that could spell trouble for its controversial rare earths industry. In a decision issued Monday, a WTO panel determined that the Chinese government has been acting in violation of international trade rules, due to export restrictions on a number of raw materials. These restrictions, the panel said, allowed Beijing to inflate global market prices, while giving an advantage to domestic producers. As a result, China will likely have to adjust its trade policies to comply with WTO regulations. In a statement, the country's Ministry of Commerce said it "deeply regrets" the decision, but confirmed that the People's Republic will adhere to it. This week's ruling applies to materials like bauxite, coke, magnesium, manganese and zinc, but, most notably, does not apply to rare earths -- a group of 17 elements critical to the production of tablets, smartphones and myriad other gadgets. China has maintained a rather tight grip over the world's rare earths market, thanks to a slew of export controls, quotas and government-erected barriers to entry. The country has come under intense international pressure in recent years, with the US, EU and Mexico filing complaints with the WTO, arguing that China's price-inflating restrictions violate international trade agreements. Beijing, for its part, has long maintained that its export controls are designed to minimize the environmental impact of rare earth mining, while meeting the country's surging domestic demand. It's an argument that's come up a lot during this debate but one that the WTO, on Monday, deemed illegitimate, stating that China has thus far been "unable to demonstrate" the environmental benefits of its policies. The decision won't have any immediate bearing on these policies, but some observers are hopeful that it may be a sign of things to come. Michael Silver, CEO of rare earth processor American Elements, told Reuters that the ruling "confirms the existence of the two-tiered price structure that has caused so much concern," with EU Trade Commissioner Karel De Gucht adding that the decision should force China to remove restrictions on both the aforementioned raw materials and rare earths, alike. Others, however, aren't so optimistic, pointing out that, with a full 95 percent of the rare earths market under its aegis, China could realistically afford to ignore any decisions handed down from the WTO in the future.
Major Chinese supplier halts rare earths production in attempt to boost prices
With prices sliding and uncertainty rising, China's biggest producer of rare earth minerals has suddenly decided to suspend all operations, in a move that could strain already tense relations with the West. Baotou Steel, a miner, refiner and vendor located in Inner Mongolia, announced the decision in a statement today, explaining that it's simply looking to "balance supply and demand" in response to a prolonged price slump within China. Since June, in fact, prices of neodymium oxide and europium oxide have declined by 34 and 35 percent, respectively, with many analysts attributing the drop to mounting economic uncertainty in the US and Europe. Earlier this year, the Chinese government announced plans to merge or close some 35 rare earths producers within the mineral-rich northern region of Inner Mongolia, effectively crowning Baotou Steel as the industry's epicenter. Now, of course, that's all changed, though the shutdown will only last for one month. It's also worth noting that China still exerts rather considerable influence upon the market, accounting for roughly 97 percent of all production of rare earths -- a group of 17 minerals used to manufacture gadgets like cellphones, flat-screen TVs and EV batteries, among others. And while new deposits and market projections may point to a transforming landscape, it's unlikely that Chinese influence will wane anytime soon -- much to the chagrin of Western free trade advocates.
WTO says China's rare earths export controls violate international rules, US applauds
China's monopolistic approach to the rare earths market is in violation of international trade regulations, according to a new ruling from the WTO. The verdict, issued yesterday, covers exports of nine minerals -- including zinc, manganese and magnesium -- that are used to produce a wide variety of smartphones, tablets and other gadgets. China, which controls about 95-percent of the world's rare earth supply, had previously argued that its export restrictions were needed to prevent overproduction and to conserve natural resources, but the WTO determined that the country was "unable to demonstrate" these environmental benefits. The investigation was originally spurred 18 months ago, after the US and other countries complained that China's quotas and tariffs unfairly favored domestic manufacturers, while distorting global prices. Experts expect Beijing to appeal the ruling, but this extra international pressure, combined with shifting supply chains and newfound deposits, may bring about the changes many have been calling for. If it doesn't, we'll all be stuck with corn phones.
US files complaint with WTO over EU tariffs on high-tech products
Yeah, so Sony's hitting us with magically-thin OLED TVs, Microsoft is showing off Windows 7, and Google's demoing hot new Android phones, but nothing gets us going like an old-fashioned tariff agreement dispute based on the classification of certain types of goods, you know? That's just good clean fun. It's also what's going down between the US and the EU -- our charming government has just filed a complaint with the World Trade Organization, alleging that the EU is mis-classifying multifunction printers, flat-panel computer displays, and cable boxes that fall under the 1996 Information Technology Agreement in order to collect tariffs on their imports. Essentially all these products should be duty-free, but the EU says their additional functions require the ITA be re-negotiated to cover them -- LCD displays can also be used with DVD players, for example, and so qualify as "video monitors," which are taxed. Sure, it's a totally semantic fight, but that's what trade representatives live for -- we hear this one's going to be bigger than the 2006 Canadian Softwood Lumber Import showdown.[Via Physorg]
Nintendo joins US govt's crusade against piracy in China
Nintendo has pledged its support of a US-led stance against China's burgeoning military budget, er, counterfeit video games market, according to a company presser today. With few government restrictions holding them back, pirates plundered an estimated $762 million worth of booty in China last year. And these scallywags aren't your typical kid brothers burning DVDs in the basement and exchanging them for lunch allowances in the cafeteria. No, this is well-organized crime, which has accounted for the more than 7.7 million counterfeit gaming products seized during the past four years -- and only a single criminal prosecution brought against the more than 300 Chinese factories and retailers dealing in this illicit trade. To avoid punishment, an operation need only keep its pirated stock below a certain threshold and do away with bookkeeping.The rampant piracy, which affects hundreds of companies in the games industry, has prompted the US Trade Representative to seek formal consultations with China regarding the government's failure to meet World Trade Organization obligations concerning intellectual property protection. Nintendo has chipped in, providing evidence of piracy in China and other countries during the annual "Special 301" investigation. In turn, the US Trade Representative will use this evidence to push China to comply with global standards. "Progress must be made," urged an unusually stern Nintendo.
Virgin Mobile poised to launch MVNO in China
Interfax China is reporting that Virgin Mobile is close to signing a partnership with wireless carrier China Unicom that would make the UK-based company the first foreign MVNO in post-WTO China. Although Virgin would still require approval from the Chinese government, which carefully scrutinizes all proposed foreign business presences, the company will benefit from past deals in which Spain's Telefonica and Germany's Vodafone have made invesments in domestic telecom firms. Virgin already has offices in Shanghai, and CEO Richard Branson recently told reporters to expect a Chinese launch this fall, so it would seem pretty likely that this venture, which is well over a year in the making, has the necessary government support to proceed.
