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Showing posts with label WTO. Show all posts
Showing posts with label WTO. Show all posts

Thursday, May 7, 2020

US media-NGO-politician institution weaves coronavirus conspiracy: Exclusive with Grayzone founder

Unpacking the institutional lies in the US: Exclusive with The Grayzone founder


https://youtu.be/5pgEpUm7RBI

 Grayzone reporter talks Xinjiang, COVID-19 and western mediabr 


https://youtu.be/lBz-DW0NJa4

 In recent years, the U.S. and China have wrestled on several major international issues – from human rights to international trade – that reflect as much about their differences in political philosophy as the latter's rise. CGTN's Zeng Ziyi recently talked to Ajit Singh, journalist and contributor at The Grayzone, about what he learned from reporting on Xinjiang, the role of western media, as well as what he calls the U.S.' new "Cold War" with China.

Trump's gang self-exposed: We are ALL vaccinated! Covid-19 is a CIA plot against all mankind!

https://youtu.be/Vbb-i3b7E4M

Founder of The Grayzone disputes conspiracy theories targeting China

https://youtu.be/uBp3oqTMRjs Expert: 

Suing China for COVID-19 has no basis in international law



https://youtu.be/ThWyZMoX-M4

Trump's gang self-exposed: We are ALL vaccinated! Covid-19 is a CIA plot against all mankind!

https://youtu.be/Vbb-i3b7E4M

Smoking Gun Evidence Reveals Trump Was Warned About Pandemic | The Beat With Ari Melber | MSNBC


https://youtu.be/NaMSAXGQrTI


This is one of three parts of “US using coronavirus to escalate new Cold War with China: Exclusive with founder of The Grayzone”

1. US media-NGO-politician institution weaves coronavirus conspiracy: Exclusive with Grayzone founder

2. Unpacking lies that aim to deceive US into war with China: Exclusive with Grayzone founder

3. Bipartisan hardliners use coronavirus to escalate Cold War with China: Exclusive with Grayzone founder

Editor's Note: The Grayzone, a US-based independent news outlet, recently published a story busting the conspiracy theory of COVID-19 escaping from China’s Wuhan Institute of Virology, adding that it is “the Trump administration’s Iraqi WMD.”

Apart from digging into stories behind the conspiracy theories, the Grayzone also released many reports related to Northwest China’s Xinjiang Uygur Autonomous Region in recent months. For example, it released a report in March that stated “forced labor” stories hyped by some Western and US media and US-based nongovernmental organizations are orchestrated by the “US government, NATO, arms industry to drive Cold War PR blitz.”

To learn more about The Grayzone and its work, the Global Times reporter Liu Xin(GT) spoke to Max Blumenthal(B), an award-winning journalist and founder of the Grayzone.

GT: First, let's talk about your recent work on the stories behind the conspiracy theory. How did you investigate this topic?

B: First of all, no American outlet has invited me to discuss this latest story, where I and my colleague Ajit Singh have exposed a conspiracy theory in one of the biggest newspapers in the US, the Washington Post and Fox News, which is advanced by the president, as completely false.

We haven't been invited to debate the authors. We are not invited to debate people who favor escalating the Cold War with China. We've simply been ignored. And, at the same time, we've seen many stories in the New York Times, and other papers like Politico in the past two days about how China is advancing disinformation, and they are all sourced to US officials who are not named.

I really thank you for bringing me on. This is the only outlet that has asked me to come on board. It also shows that we are unfortunately in a kind of information war where the truth doesn't matter. The American people are not going to be exposed to the truth, and my goal with the Greyzone is to interrupt the drive to war and sanctions and hostility by simply presenting the American people and the English-speaking public with a balance, with the other side. To do so, we exposed, what we call, the lie of the day.

Every day there's a new lie, and it's advanced under the banner of, supposedly, free and independent media. But if you look at the stories, you'll often see, according to US officials, or according to this research scientist, or they'll link to an article. But, we simply go into the sources that expose what they are!
Photo: screenshot of The Grayzone

For example, in our story about how the Washington Post advanced this conspiracy theory about the Wuhan Institute of Virology and how, supposedly, COVID-19 escaped during an experiment at the Wuhan lab. One person stood out in that article, who was quoted, named Xiao Qiang. He was quoted as a research scientist, but I thought that sounds funny. A research scientist, this is not a virologist, someone who studies viruses. This is not an epidemiologist who studies epidemics. I immediately assumed this person is a Chinese dissident.

I was right! I just looked up Xiao Qiang on the National Endowment for Democracy. This is the US government entity that funds, supports, and trains opposition movements from around the world to support regime change. I quickly learned along with my colleague Ajit Singh that Xiao Qiang's whole career has been supported by the NED. This is a dead giveaway and a clear sign that something is strange about this article.

I've done extensive work on the NED. I produced a documentary about it. And, from what we've shown, it was created by the CIA, the Central Intelligence Agency, under the Reagan administration, in order to do what the CIA used to do secretly but to do it openly to support opposition movements, like the movements in Hong Kong.

I'm an American journalist. I've been working for almost 20 years in the US media environment as someone who comes from the left, who opposed the war in Iraq and exposed the Bush administration's lies. And, I know about the neoconservative movement. It is the pro-war movement that moves between both Democratic and Republican parties, and it has a lot of influence in Washington.

I knew that the author of the Washington Post story, Josh Rogan, was a big part of the neoconservative movement. He had actually worked at the Japanese Embassy in the past and is someone predisposed to pushing narratives that advance the new Cold War with China. I don't present myself as a China expert, nor do I say that I'm a Russia expert. But I'm an America expert, and I know the institutions and the people that have been driving us into endless war for the last 20 years. And in some cases, I know them personally. So that gives me a big advantage to investigate such stories.

GT: We have noticed an anti-China campaign there. How did the US politicians and media work together to push this?

B: We've just seen that with the introduction of this Chinese lab theory on how US politicians and the media work together, as well as with NGOs and think tanks. I think this is a perfect example.

On April 14, it appears in the Washington Post, through a very anti-China columnist, in the opinion section. But it is under the banner of a paper that many people trust. The columnist himself admits there is no evidence to prove that COVID-19 escaped from the Wuhan lab, but the piece gets shared widely by Democrats and Republicans.

The following day, a similar piece appears in Fox News, which is the favorite network of President Trump and the Republican Party. This network says officially, US sources say that they believe the virus escaped from Wuhan Institute of Virology. The State Department Secretary Mike Pompeo, who is the most militaristic member of the Trump administration, also said this.

Screenshot from a Fox News report, which say sources believe the disease started in a Chinese lab.

The State Department was behind this story. They had leaked cables from the US Embassy in Beijing to reporters, claiming that there were safety issues at the lab. Actually, the cables, if you read them closely, state that these experiments, which were being done into coronavirus and SARS, were very important.

They're distorting the cables. Fox News reports this in the day. One of the most extreme pro-war Senators, Tom Cotton, appears and says, "China is responsible for every death," "China has to be punished," and "China has to be sanctioned."

Fox News opens up a propaganda blitz with all of its hosts calling for China to be punished. They're cultivating Republican opinion for the new Cold War very successfully.

You can see very clearly that the State Department leaks information to the media. The media spins the story and presents it to the public. Then, politicians issue calls for new policies of militarism and extreme hostility to China. If you look closely, in these stories, various people from the NGO sector are quoted as sort of experts. But as I mentioned before, there are people like Xiao Qiang, who are not, in fact, experts who are activists paid by the US government.

GT: Do you think the US media have objectively reported on China's anti-virus efforts? Did the biased reports prevent the American public from learning more about this epidemic?

B: Absolutely. I have not been to China. I would have to go to Wuhan and see for myself and speak to doctors and speak to people to know the response. But none of the people who present themselves as experts in the US have done this. Many of them have reasons to turn up the heat on China and to escalate with China. Some come from think tanks, which are funded by the arms industry, and some are directly funded by the State Department as well.

Others are ideologically anti-Communist. They want to break the Chinese Communist Party. Many people come to this from different directions. Some resent China because the US moved many jobs to China. And I personally think the US should manufacture goods here. We would have had a much better response to coronavirus if we were manufacturing our own masks.

But now, it is a political campaign to turn up the new Cold War and to advance Donald Trump's national security doctrine that his defense secretary James Mattis introduced in 2018, where the Defense Department declared that the US was moving from the war on terror into great power competition with China and Russia.

Immediately, we started to see more negative coverage of China. We started to see more US interest in advancing kind of human rights narratives about what China was doing to the Uygurs, for example.

Infographic: Globaltimes.cn

The conflict in Xinjiang had been going on for many years. So, why did we all of a sudden start to hear about the "supposed plight of the Uygur people" in 2019? The NED has been supporting the World Uygur Congress for decades, but why is this happening now? People in the media don't ask this question. They simply look for the new Cold War outrage because it brings readers in and it advances their careers.

Starting in 2017, because they were told that Russia had helped Donald Trump steal the election, the US public was brought into the first part of the new Cold War - a great power competition with Russia. This advanced the agenda of the National Security State and helped justify the budgets of all of these different agencies.

Then, that fell apart. It fell apart last year as the Mueller Report came out - there wasn't any proof that Donald Trump had directly colluded with Russia. And now, we have the second part of the new Cold War with China.

There is a kind of 9/11 or Pearl Harbor moment with coronavirus, where the National Security State can work through a political element. In this case, the Trump administration, which is desperate to deflect from its own failure in preventing coronavirus from coming to the US and exploding, and they can advance the second part - turning the American public against China.

US President Donald Trump addresses a news conference at the White House in Washington D.C., the United States, on March 13, 2020. File photo: Xinhua

And, if you look at opinion polls of American opinion - Democrat, Republican, left and right on China - last year compared to this year, it is amazing to see how much it has changed. It is incredibly negative right now. I think 70 percent of Americans see China as the greatest threat to the US. Last year, it was lower than 50 percent. Propaganda works!

While I'm not a cheerleader for China. I'm not claiming I'm an expert on China. I understand what's happening in my country and how dangerous this propaganda is and how dangerous a new Cold War will be to the US.

I'll give you one example because you asked about how this hurts our response to coronavirus. There was an article in the New York Times two days ago, stating that the US government is not sure whether it will allow shipments of N95 masks and other personal protective equipment into the US from China because it will advance China's propaganda efforts. Because of the widespread hatred that they have stirred up against China, we will not have this protective equipment that we need.

The only way out of the epidemic is through cooperation, because, unfortunately, we live in a globalized world where we're all interdependent. And, I don't think the US actually has the ability to completely cut itself from a powerful country like China. It's just impossible.

. Source link

read more:


US system fuels Trump team's political hooliganism: Global Times editorial

To win in the elections, there is nothing else White House can do than to pass the buck to China. And the only way to achieve that goal is to create more friction with China to keep the China-US tensions and “hold China accountable” hot topics. 

Washington's plot hard to sustain with new virus discoveries: Global Times editorial

The Trump administration will eventually pay the price for its reckless trick of passing buck to China.

US messes up manipulation of virus origin: Global Times editorial

Global scientists have never been US government puppets. The gene sequence of the novel coronavirus tells, just like more upcoming evidence, how Washington will pay for its lies. 

Pompeo betrays Christianity with lies: Global Times editorial

Pompeo has been lying. He has brought shame to the evangelical Christians in the US, misusing their trust in the Republican party. He is no doubt a degenerate politicians and despicable from the  

Pompeo's anti-China bluff strategy reveals all-or-nothing mentality to fool US voters:

Pompeo is indulging in a solo performance that has failed to adhere to the professional standards expected of a chief diplomat. His claims are not supported by scientists or reliable intelligence. It is foreseeable that this politician, who has lost his moral compass, will continue to surprise the world with his absurd theories and twisted facts.

1 million COVID-19 infections show US no super power:

The number of confirmed coronavirus cases in the US exceeded 1 million on Tuesday, making the country the only one with more than a million infections. More than 56,000 people have died from COVID-19 in the US. On Monday, global coronavirus cases passed 3 million, meaning one in three patients is in the US. The US government has failed its people and also failed the world. 

Americans to suffer from Trump's buck passing: Global Times editorial

The US response to the epidemic is undoubtedly one of the worst in the world. While the country's powerful elites should shoulder inescapable responsibility, the Trump administration's wrongdoing turn out to be mostly blameful.


Political motives behind China smears: Global Times editorial

China's achievement in the fight against COVID-19 is way better than that of the US. But China is confronting waves of accusations, which have been launched by Washington, and supported and followed by other Western countries and forces.


Pompeo an enemy to world peace: Global Times editorial

Lies may fulfill Pompeo's personal ambition, but they will never accomplish the US dreams to be "great again." Pompeo is not only a figure harmful to world peace, but also should be listed as the worst US secretary of state in its history.


Anti-virus gap with China to crush Washington lies: Global Times editorial

A country's public image is ultimately earned by its efforts, rather than empty talk or lies. Chinese people should keep calm and maintain confidence and patience.
Source: Global Times | 2020/4/26 20:33:40

WHO should probe US' virus misconduct: Global Times editorial

Since the situation is grave, we strongly call on the WHO to intervene in the investigation in the US' initial COVID-19 spread. The WHO's participation can ensure that the investigation is not distorted by the upcoming presidential election. It can also ensure that the conclusions are scientific rather than simply catering to politics. People need to see true reports that are responsible for history.
ASSESSMENT

EU COVID-19 review should avoid politicizing WHO

China welcomes and has decided to be part of WHO's global collaboration initiative to accelerate the development and production of vaccines and drugs against COVID-19 and ensure their equitable distribution.
 Washington's plot hard to sustain with new virus discoveries: Global Times editorial

Related posts:



https://youtu.be/QlhoNX5xWAA Founder of The Grayzone disputes conspiracy theories targeting China https://youtu.be/uBp3oqTMRjs

Friday, April 17, 2020

Fox News COVID-19 conspiracy theory 'REVENGE' shamed by China’s epidemic control; its unscrupulous manipulation, berated as fake news hub, hits new low on politicizing disease !!

Hundreds of activists gather outside Fox News HQ on March 13, 2019 to protest against Fox News host Tucker Carlson over his controversial comments against women. Photo: VCG
Fox News’ unscrupulous manipulation should be condemned by the global press

https://youtu.be/JMj4k_rqtfQ

This week, Fox News, one of Donald Trump's favorite mouthpieces, ran a story on the conspiracy theory that claims COVID-19 was made at a laboratory in Wuhan, China.

The most shocking aspect of this theory was not how it claimed to know where the virus originated. Such misinformation has since become old news after it was dispelled by Chinese scientists and international institutions as early as February.

What's shocking is how Fox News claimed that "multiple sources" said the virus was leaked in an attempt by China to "demonstrate that its efforts to identify and combat viruses are equal to or greater than the capabilities of the United States."

Reading the report was an unbelievable experience, and not because the Fox News claim rocked my understanding of China, but how it was unfathomable that a major news outlet would make such a ridiculous claim and even take it seriously.

Did anyone at Fox News bother to read the report? China leaked the virus because it wanted to prove its system was better than the US? It sounded like something a third-grader would say.

Even though Fox News may think that all Americans are as ignorant as Trump's consultant Kellyanne Conway, who claimed the virus was the 19th version of COVID, the report is beyond ridiculous and will inspire others to wonder if there is anyone at the news outlet whose brain actually works.

Unfortunately, Fox News has an extensive fan base who wants to be coerced into believing the "China leaked virus" theory. On Twitter, some threatened to "wipe" China off the planet and posted a gif of a nuclear bomb, suggesting that China should be nuked. Such fascist behavior should come as no surprise given that Fox News and Trump's behavior often invite racist and neo-Nazis words.

Objective and intellectual thinkers do not accept Fox News claims regarding China. On the Fox News YouTube channel, many questioned their "sources," which is something Fox News refuses to address.

What's even funnier is how Trump said in 2016 that "don't believe 'sources said' by the VERY dishonest media. If they don't name the sources, the sources don't exist."

Regardless of "sources," the Fox News theory proves a concern I've had since February. Trump and his conservative allies began making remarks that COVID-19 was "just a flu" and one that would "magically disappear" due to "hot weather." Trish Regan of Fox News said the epidemic was a "scam" by Democrats to impeach Trump. Their attitudes inspired me to wonder if the coronavirus emerged in the US first, would these people treat it just like a flu, downplay its risks and even cover up the truth of this deadly pandemic?

China reported, studied, and fought the virus first, treated it as a very serious crisis, and became a whistleblower for the pandemic worldwide. China's efforts might have foiled Trump and his henchman's plan to downplay COVID-19. So, when the outbreak in the US worsened and couldn't be covered up because of information from China, Trump and his men would dislike China for revealing the true nature of COVID-19, which would also jeopardize his approval rating.

And now, in Fox News' latest false claim, one can certainly sense such a grudge against China. It is apparently a form of revenge by Trump's team as they are shamed by China.

In other words, the Fox News' conspiracy theory may have revealed how they never took COVID-19 seriously. For them and Trump, it is ultimately a political reality show for Trump's re-election so that instead of being responsible, their priorities are always to find someone to blame, be it Democrats, news media, China, or the World Health Organization.

For those who need further evidence that Trump and his puppy Fox News only care about political gain, check the internet and social media and see who is spreading misinformation and who is pretending that this is just a flu.

There is a saying on China's social media: Like idols, like fans.

Source link


RELATED ARTICLES:

  • US media outlet Fox News recently published a report hyping the old conspiracy theory that the novel coronavirus was made in "a Wuhan laboratory" by citing "anonymous sources" without even explaining how the sources acquired the information. Known as a hub for fake news about coronavirus, Fox News's latest report was criticized by overseas netizens and experts for demonstrating a new low of "lack of professionalism" in journalism. 
  •  Fox News berated as fake news hub spreading conspiracies about COVID-19 - Global Times https://www.globaltimes.cn/content/1185825.shtml#.XpqI0P7Z4cA.twitter

Fox host hits new low on politicizing disease

The malicious act of Fox News and Watters, driven by their selfishness, is the negative energy in the global anti-epidemic fight.

Fox News’ Covid-19 misinformation is a danger to public

https://youtu.be/vn5yQ3c5zlQ

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 People stand near the Yangtze River in the city of Wuhan, on April 6. In recent weeks, officials have gradually eased some of the lockdo

Monday, September 24, 2018

Tariff war threatens world trading system

https://youtu.be/BCu1Mt9GWT8 https://youtu.be/BheswegaOKk https://youtu.be/1_udiBoAP68

TODAY marks another milestone in the escalating global trade war that threatens to shake the foundations of the world trading system and cause economic uncertainty at a time of financial fragility. It’s an altogether bad development that adds more gloom to global economic prospects.

Last week, the United States announced it would slap an additional 10% tariff on US$200bil worth of imports from China. Hours later, China said it would put 5% to 10% extra tariffs on US$60bil of imports from the US.

Both sets of tariff increases come into effect today. But that’s not all.

The US also said it would raise the extra tariffs on the US$200bil of imports from 10% now to 25% at the end of the year. And if China retaliates (which it now has), the US might slap higher tariffs on yet another US$267bil of Chinese imports.

This comes on top of tariffs on an initial US$50bil worth of imports that the US had placed on Chinese imports a few months ago, and equivalent tariffs on US$50bil on US imports that China imposed as retaliation.

And even before that, the US had put extra tariffs on steel and aluminium imports from all countries, except a few that were exempted for the time being.

The US is also threatening to put tariffs on imported auto vehicles and parts, including those from Europe. That is on hold because of a bilateral deal reached, but could be re-ignited if President Donald Trump is not satisfied with Euro­pean behaviour.

The US itself is experiencing negative effects of this trade war. The prices of the initial US$50bil of imported Chinese products have started to go up in the US, raising costs for both consumers and producers.

The Chinese are similarly affected. Exports of both countries are also bound to decline, and this will eventually affect their overall economic growth.

There will be collateral effects on other countries. In Asia, those that are integrated in the global supply chain will find less demand for their exports of components to China. The effect on Malaysia is projected by analysts to be around 0.4 to 0.7 percentage point of GNP in 2019.

This could be offset by positive effects. Some companies producing in China are considering relocating to other countries, including Malaysia, to escape the US’ punitive tariffs. And some Malaysian products may become cheaper than Chinese products, which will now attract extra duties.

But it is likely that the bad effects will outweigh any such good effects, at least in the short run.

It is clear that the US is to blame for the trade war. Its unilateral actions are against the spirit and rules of the trading system, and have in fact undermined its legitimacy and viability.

The steel and aluminium tariffs were imposed under the US security clause of its domestic trade law, while the other tariff increases are under Section 301 of the trade law. The US actions are against various World Trade Organisation (WTO) rules.

Challenges to the US unilateral measures have been taken by China and other countries at the WTO. If the US is found in violation, which is quite likely, it has to stop its actions or face retaliation: the countries that win the cases heard by the WTO panels of experts are allowed to impose equivalent tariffs on US products.

However, the US has engineered a crisis in the WTO’s dispute settlement system so that soon the outcome of successful cases against it cannot be implemented.

This is because the US is now paralysing the WTO’s Appellate Body by refusing to allow new members of the body to be appointed to replace those retiring. Soon there will be only three members left, out of a full body of seven. Two more will be retiring in January 2019. A minimum of three members is needed to sit on a case.

Thus, if a lower-level panel rules against the US’ unilateral actions, and the US lodges an appeal that cannot be heard because there are not enough appellate body members, the panel decision cannot be enforced.

This would make the WTO quite a toothless organisation. There would be no legal remedy to enforce penalties for breaking the WTO laws. Countries that impose unilateral tariff increases can get away with it. In turn, other countries would also do the same.

The rules-based trade system is already starting to break down. We are now seeing blatant protectionism by the US and retaliation by affected countries. Within months, the trade war could spread, with the law of the jungle becoming more prominent.

Tears will not be shed in the developing countries if some rules cannot be upheld anymore, such as the WTO’s TRIPS agreement on intellectual property. The free trade economist Jagdish Bhagwati has said the TRIPS treaty does not belong in the WTO.

But what all members like about the WTO is its role in ensuring the predictability that their exports can sell in the markets of its members, with tariffs at rates agreed to at the WTO.

If that predictability is lost, then there can be a lot of uncertainty, as one country after another can unilaterally impose extra tariffs on other countries, which may then trigger retaliation.

This breakdown of the trading system may be the more serious effect of what started as a US-initiated trade war.

Trump may not care what happens to the system, as he has said many times that the WTO is a terrible organisation that the US should leave. And his recent actions, in fact, seem calculated to undermine, if not destroy it.

It is a new world we are looking at, in a scenario that would not have appeared possible a year or even months ago.

Policy makers, companies, analysts and the public should ponder about this, even as they follow the details of the tit-for-tat trade war that the US is waging against China and other countries.

Martin Khor is adviser of the Third World Network. The views expressed here are entirely his own.

Credit: Global Trend by Martin Khor


Related:



China won't yield to US trade stick

We also hope that the Chinese public gets to know the causes and effects of the event and the steadiness of the Chinese government's policies. No matter how long China-US trade conflicts last, China is doing what it should. China is honest and principled and a major trade power with intensive strengths. No one can take us down.

US hysterical in blocking sci-tech exchanges

The US is anxious about its temporary gains and losses. One minute it wants Sino-US exchanges, but the next it worries China is taking advantage. Its relevant policies are bound to change all the time. Its latest decision is like the trade war. Washington's purpose is to drag Beijing down, but it will mostly hurt itself.



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Tariff war threatens world trading system

https://youtu.be/BCu1Mt9GWT8 https://youtu.be/BheswegaOKk https://youtu.be/1_udiBoAP68

TODAY marks another milestone in the escalating global trade war that threatens to shake the foundations of the world trading system and cause economic uncertainty at a time of financial fragility. It’s an altogether bad development that adds more gloom to global economic prospects.

Last week, the United States announced it would slap an additional 10% tariff on US$200bil worth of imports from China. Hours later, China said it would put 5% to 10% extra tariffs on US$60bil of imports from the US.

Both sets of tariff increases come into effect today. But that’s not all.

The US also said it would raise the extra tariffs on the US$200bil of imports from 10% now to 25% at the end of the year. And if China retaliates (which it now has), the US might slap higher tariffs on yet another US$267bil of Chinese imports.

This comes on top of tariffs on an initial US$50bil worth of imports that the US had placed on Chinese imports a few months ago, and equivalent tariffs on US$50bil on US imports that China imposed as retaliation.

And even before that, the US had put extra tariffs on steel and aluminium imports from all countries, except a few that were exempted for the time being.

The US is also threatening to put tariffs on imported auto vehicles and parts, including those from Europe. That is on hold because of a bilateral deal reached, but could be re-ignited if President Donald Trump is not satisfied with Euro­pean behaviour.

The US itself is experiencing negative effects of this trade war. The prices of the initial US$50bil of imported Chinese products have started to go up in the US, raising costs for both consumers and producers.

The Chinese are similarly affected. Exports of both countries are also bound to decline, and this will eventually affect their overall economic growth.

There will be collateral effects on other countries. In Asia, those that are integrated in the global supply chain will find less demand for their exports of components to China. The effect on Malaysia is projected by analysts to be around 0.4 to 0.7 percentage point of GNP in 2019.

This could be offset by positive effects. Some companies producing in China are considering relocating to other countries, including Malaysia, to escape the US’ punitive tariffs. And some Malaysian products may become cheaper than Chinese products, which will now attract extra duties.

But it is likely that the bad effects will outweigh any such good effects, at least in the short run.

It is clear that the US is to blame for the trade war. Its unilateral actions are against the spirit and rules of the trading system, and have in fact undermined its legitimacy and viability.

The steel and aluminium tariffs were imposed under the US security clause of its domestic trade law, while the other tariff increases are under Section 301 of the trade law. The US actions are against various World Trade Organisation (WTO) rules.

Challenges to the US unilateral measures have been taken by China and other countries at the WTO. If the US is found in violation, which is quite likely, it has to stop its actions or face retaliation: the countries that win the cases heard by the WTO panels of experts are allowed to impose equivalent tariffs on US products.

However, the US has engineered a crisis in the WTO’s dispute settlement system so that soon the outcome of successful cases against it cannot be implemented.

This is because the US is now paralysing the WTO’s Appellate Body by refusing to allow new members of the body to be appointed to replace those retiring. Soon there will be only three members left, out of a full body of seven. Two more will be retiring in January 2019. A minimum of three members is needed to sit on a case.

Thus, if a lower-level panel rules against the US’ unilateral actions, and the US lodges an appeal that cannot be heard because there are not enough appellate body members, the panel decision cannot be enforced.

This would make the WTO quite a toothless organisation. There would be no legal remedy to enforce penalties for breaking the WTO laws. Countries that impose unilateral tariff increases can get away with it. In turn, other countries would also do the same.

The rules-based trade system is already starting to break down. We are now seeing blatant protectionism by the US and retaliation by affected countries. Within months, the trade war could spread, with the law of the jungle becoming more prominent.

Tears will not be shed in the developing countries if some rules cannot be upheld anymore, such as the WTO’s TRIPS agreement on intellectual property. The free trade economist Jagdish Bhagwati has said the TRIPS treaty does not belong in the WTO.

But what all members like about the WTO is its role in ensuring the predictability that their exports can sell in the markets of its members, with tariffs at rates agreed to at the WTO.

If that predictability is lost, then there can be a lot of uncertainty, as one country after another can unilaterally impose extra tariffs on other countries, which may then trigger retaliation.

This breakdown of the trading system may be the more serious effect of what started as a US-initiated trade war.

Trump may not care what happens to the system, as he has said many times that the WTO is a terrible organisation that the US should leave. And his recent actions, in fact, seem calculated to undermine, if not destroy it.

It is a new world we are looking at, in a scenario that would not have appeared possible a year or even months ago.

Policy makers, companies, analysts and the public should ponder about this, even as they follow the details of the tit-for-tat trade war that the US is waging against China and other countries.

Martin Khor is adviser of the Third World Network. The views expressed here are entirely his own.

Credit: Global Trend by Martin Khor


Related:



China won't yield to US trade stick

We also hope that the Chinese public gets to know the causes and effects of the event and the steadiness of the Chinese government's policies. No matter how long China-US trade conflicts last, China is doing what it should. China is honest and principled and a major trade power with intensive strengths. No one can take us down.

US hysterical in blocking sci-tech exchanges

The US is anxious about its temporary gains and losses. One minute it wants Sino-US exchanges, but the next it worries China is taking advantage. Its relevant policies are bound to change all the time. Its latest decision is like the trade war. Washington's purpose is to drag Beijing down, but it will mostly hurt itself.



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Friday, May 27, 2016

Free trade in rhetoric, not in practice by Western countries

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WESTERN countries commonly proclaim the great benefits of free trade and the evils of protectionism.

Globalization Of Trade Without Globalization Of Law Results In Plutocratization. This Is Exactly What Happened To The Roman Republic, & Why It Faltered

In reality, many developed countries practise double standards, insisting on free trade in areas where they are strong, whilst using protectionist measures in sectors where they are weak.

In the worst case, within the same sector they have designed rules that impose liberalisation on developing countries but allow themselves to maintain high protectionism.

An outstanding example is in agriculture, in which the rich counties are not competitive.

If “free trade” were to be practised, a large part of global agricultural trade would be dominated by the more efficient developing countries.

But until today, agricultural trade is dominated instead by the major developed countries.

For many decades they got an exemption for agriculture from trade liberalisation rules.

This exemption ended when the World Trade Organisation (WTO) was crea­ted in 1995 and the rich countries were expected to open their agriculture to global competition.

But in reality, WTO’s agriculture agreement allowed them to have both high tariffs and high subsidies.

The subsidies have enabled far­mers to sell their products at low prices, often below production cost, yet allowed them to get adequate revenues (which include the subsidies) that keep them in business.

This has four negative effects on developing countries.

Firstly, those countries that are agri­­culturally competitive cannot pe­­netrate the rich countries’ markets.

Secondly, the developing countries are deprived of other markets because the United States and Europe can export the same farm products at artificially cheap prices. This is a complaint of African cotton-producing countries.

Thirdly, by exporting a product cheaply, the developed country reduces the demand for a competitor substitute product. If the US did not subsidise its soybean, enabling soybean oil to be cheaper, Malaysian or Indonesian palm oil would have a bigger market.

Fourthly, these cheap products (such as chicken from US and Europe) have entered many deve­loping countries, damaging the livelihoods of their local farmers.

In 2001, the WTO launched a Doha development agenda whose chief goal was to liberalise the agriculture of developed countries.

Much energy was spent over many years to devise methods and formulae to liberalise agricultural trade, and a high degree of consensus was reached.

However, the US, backed by Europe, has now made it clear they do not intend to conclude the Doha Round.

Future WTO negotiations have to be on a new basis, and not based on existing texts.

An article by Chris Horseman in the bulletin Agra Europe (May 12) analysed why the US now cannot accept the existing text.

A reduction in the maximum limit of one type of allowed subsidies (called de minimis) would have pushed the US to increase by 58% another type of disallowed subsidies (known as AMS).

This partly explains “why the US is keen to move away from the formulae on the table and to negotiate a fresh approach,” said the article.

Due to its powerful farm lobbies, the US will not change its domestic policies (embodied in its 2014 Farm Bill) to meet the Doha agenda’s new limits on the allowed amounts of domestic subsidies.

The same article also shows how the European Union has meanwhile changed the types of subsidies it provides, in order to better comply with WTO rules. This also allowed the EU countries to maintain their total domestic subsidies at around €80bil (RM356bil) annually from 2004 to 2013.

Two decades after the WTO was set up, the rich countries have continued the high level of their agricultural protection.

There is little prospect that they will agree to changes in the trading system that will effectively eliminate or reduce the massive subsidies that keep their farming systems afloat.

The poorer countries simply do not have the money to match the subsidies of the rich.

If they want to defend their far­mers and their food security, they can only put up tariffs to levels that keep out the cheap subsidised pro­ducts.

But those developing countries that sign free trade agreements with the US and the EU have to cut their agriculture tariffs to zero or very low levels.

At the same time, at the insistence of developed countries, agricultural subsidies are kept off the FTA agenda. Thus, the rich countries can keep their subsidies and swamp developing countries with their farm products.

The US and EU are also taking protectionist measures in other areas against developing countries.

For example, the US successfully filed a case against India at the WTO, that the latter’s National Solar Mission favours local firms through its domestic content requirements for solar cells and modules.

This kind of objection makes it extra difficult for India or other developing countries to take action against climate change.

The European Parliament recently voted to refuse giving China the status of a market economy in the WTO, although WTO members are obliged to recognise China as a market economy by December 2016, 15 years after it joined the WTO in 2001.

By denying China this status, it is easier for other countries to suc­­­­­­c­e­ed when taking anti-dumping cases against China, and thus to place extra tariffs on Chinese exports.

China and India are fighting back.

India last week announced it will file 16 cases against the US for violating WTO rules when providing subsidies under its renewable energy programmes.

China won a case against the US in the WTO for wrongly imposing countervailing duties against 15 Chinese products including solar panels, steel sinks and thermal paper.

However, the US has not complied with the panel decision to withdraw the duties, and China is now starting action at the WTO to get the US to comply.

It seems impossible to prevent or reduce the rich countries’ high protection of their agriculture. And it also seems they will continue using protectionist measures against products or policies of developing countries.

There is indeed a big gap between the rhetoric and practice of free trade.

By Martin Khor Global trends

Martin Khor (director@ southcentre.org) is executive director of the South Centre. The views expressed here are entirely his own.

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