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TRADE WARS
US asks China, India, Brazil to be upfront on Doha deal

US imposes penalties on Chinese potassium, paper imports
Washington (AFP) March 2, 2010 - The United States decided Tuesday to impose sanctions on imports of certain potassium salts and coated paper from China, amid bilateral trade tensions. The Commerce Department said it would slap preliminary duties -- a whopping 109 percent on potassium salts and up to 13 percent on coated paper -- to offset government subsidies. The actions add to bilateral tensions following other US trade sanctions and tit-for-tat moves by Beijing, and charges by some US groups that China was manipulating its currency for trade gains.

Potassium salts are used in industrial cleaning products, fertilizers and food additives while coated paper is used in printing of corporate annual reports and high-end catalogues and magazines. The US Commerce Department said in separate statements that it had "preliminarily determined" that Chinese producers and exporters of the two products had received subsidies equivalent to the duties that were imposed. "As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates," the statement said. From 2006 to 2008, imports of certain potassium phosphate salts from China increased 228 percent by volume and were valued at about 16.4 million dollars, the department said.

A final determination is to be made in May. The department said that it would also impose 17.48 percent preliminary duties on certain coated paper imported from Indonesia over the same issue of government subsidies. The final determination for the coated paper cases will be made in July. In the latest high-profile trade action, the US International Trade Commission (ITC), an independent federal agency, made a "final decision" to impose duties on imported Chinese steel pipes targeted for unfair subsidies. In the December 31 decision, the commission said that the subsidized pipes adversely impacted the domestic steel industry and asked the Commerce Department to impose countervailing duties of up to nearly 16 percent. It was the largest countervailing duty case filed against China, based on the 2.6 billion dollars trade value for the item in 2008.
by Staff Writers
Washington (AFP) March 1, 2010
The United States asked nations like China, India and Brazil on Monday to clarify their market-access measures in a bid to break the deadlock on the long-stalled Doha Round of global trade talks.

President Barack Obama's top trade envoy Ron Kirk said that while the United States was forthcoming about its market-opening commitments, it was unsure how much Americans would benefit from reciprocal steps by advanced developing nations.

"The value of new opportunities for our businesses, workers, farmers and ranchers remains vague because of the broad flexibilities available to key emerging markets, like China, India, and Brazil, that are fast-growing economies and important markets of the future," he said.

"To achieve further progress, it is essential to gain more clarity in the level of market-access contributions by advanced developing countries, and ensure that the results provide significant market opportunities for American entrepreneurs and workers in agriculture, goods and services."

Such market-access contributions would also underpin the development goals of the Doha talks, given that 70 percent of the tariffs imposed on developing countries had to be paid to other developing countries.

"In terms of what is currently on the table in the Doha negotiations, the value of what the United States would give in market opening, along with a reduction of US agriculture support, is well-known and easily calculable," Kirk said in a report to Congress on Obama's 2010 trade policy agenda.

The extent to which advanced developing economies should lower tariffs and the United States and the European Union should reduce aid to their farmers are among disagreements between developing and developed nations dogging the Doha Round since its launch in 2001.

Deadlines to conclude the talks have been repeatedly missed.

Kirk said the United States remained convinced that a Doha success could be achieved if all major economies were willing to come to the negotiating table.

He also said that Washington remained committed to a "stock-taking" of the Doha negotiations in early 2010, as directed by the Group of 20 leaders of industrialized and emerging nations.

"The United States is committed to ensure that this be done in the most efficient and appropriate format that contributes to further progress," he said.

The World Trade Organization's 153 members are expected to take stock this month of whether the Doha round can be finished in 2010.

Kirk warned that "a weak agreement" would ultimately also weaken the WTO, the global trade watchdog.

Aside from moves to strengthen a rules-based trading system, Obama's 2010 trade policy agenda includes efforts to implement free trade agreements already signed with South Korea, Panama and Colombia and strategies to boost exports to create jobs as the country battles nearly double digit unemployment.

Kirk said that Washington was trying to resolve issues relating to market access for US autos and beef in South Korea, while labor reform and tax transparency matters had to be addressed in Panama.

With Colombia, efforts are being made to beef up the country's labor code and to address violence against labor union officials to ensure that union rights in that country can be fully and freely exercised, Kirk said.

"If these outstanding issues can be successfully resolved, we will work with Congress on a timeframe to submit them for congressional consideration," he said.

The trade deals with the three nations were signed during the administration of Obama's predecessor George W. Bush but had been held up due to opposition from the Democratic-controlled Congress.



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TRADE WARS
German high-tech sector flat in 2010: trade body
Hanover, Germany (AFP) March 1, 2010
Germany's high-tech industry is not expected to return to growth until 2011 after a devastating recession in 2009, its chief lobby group said Monday ahead of the giant CeBIT trade fair. Turnover this year will be at around the same level as last year, but in 2011, the sector is poised to grow by 1.6 percent to 142 billion euros (193 billion dollars), the BITKOM industry organisation said. ... read more







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