U.S. 'must fix the many bad trade deals it has made'

Jul 10, 2017, 00:18
U.S. 'must fix the many bad trade deals it has made'

In its communique, the G-20 pledged renewed efforts to combat excess capacity in the steel industry, one of the officials said.

President Trump, just back from his first G20 summit, is touting his trip to the gathering of world leaders as a "great success for the U.S".

Moreover, trade diplomats fear USA security-based tariffs on steel would widen cracks in the global trading order, after Saudi Arabia, Bahrain and the United Arab Emirates cited national security at the WTO last week to justify their economic boycott of Qatar.

G-20 leaders will discuss steel overcapacity at this week's summit in Germany, European officials said, as tensions rise over President Donald Trump's plan to use a Cold War-era law to restrict steel imports for national security reasons.

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Policies that could fall under national security include China's new Cyber Security Act, which is under WTO scrutiny from Japan, South Korea, the United States and others; Ukraine's gas pipeline reforms; and Russia's trade restrictions on Ukraine.

"Explained that the USA must fix the many bad trade deals it has made", he tweeted early Sunday.

China pledged to reduce the country's annual steel capacity by as much as 150 million tons before 2020, but the country remains the world's largest steel producer and accounts for almost half of the globe's total steel production. He suggested putting on Chinese imports 45% tariff and said he would announce on his first day in the office that China was a currency manipulator, and he said proposing taxing imports from Mexico that he would rip up the trade deals and referred this as the Trans-Pacific Partnership, or TPP.

The EU might impose retaliatory duties on whiskey, orange juice and dairy products should the USA decide to raise steel tariffs, the Financial Times reported that day.

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The future Economic Partnership Agreement between the European Union and Japan "will be the model of the economical order of the 21st century", Abe told the other world leaders, according to Maruyama - Trump among them. Otherwise, the risk of "bilateral actions" increases, Merkel said. So much for China working with us - but we had to give it a try!

The administration has been reviewing the effect of steel imports on the American economy and national security since April with the Department of Commerce due to release a report on the topic as soon as this week. Indeed, analysts have warned that tariffs could drive up steel prices for US manufacturers.

Angela Merkel the Chancellor of Germany has been critical of the view Trump holds for global trade.

The tariffs could very well provoke a global trade war.

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The leaders agreed in the final statement of the G-20 leaders that they would "fight protectionism and all unfair trade practices and recognize the role of legitimate trade defense instruments in this regard".