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WORLD NEWS Wednesday 14 OctOber 2020
WTO says EU can put tariffs on $4 billion of U.S. goods

By JAMEY KEATEN ton state, which was once
Associated Press headquartered in Seattle
GENEVA (AP) — Interna- and has major manufactur-
tional arbitrators said Tues- ing operations in the state,
day that the European unfairly harmed Airbus jets
Union can impose tariffs in the large single-aisle civil
and other penalties on up aircraft market — namely
to $4 billion worth of U.S. the A320neo and A320ceo
goods and services over il- aircraft. The U.S. argues that
legal American support for those tax breaks ended this
plane maker Boeing. The year, eliminating any basis
move further sours transat- for the award.
lantic ties at a time when U.S. Trade Representative
the coronavirus has doused Robert Lighthizer told The
trade and savaged econo- Associated Press that the
mies. decision "doesn't really au-
The ruling by the World thorize any action on their
Trade Organization arbitra- part'' because Washington
tors, which could inflame state has already repealed
Trump administration criti- the tax breaks that the WTO
cism of the Geneva-based deemed illegal. "Our view is
body, amounts to one of In this photo provided by Nana Mariam Maiga, World Trade Organization Deputy Director that we're in compliance,''
the largest penalties hand- General Yi Xiaozhun, centre, speaks at a news conference in Geneva, Tuesday Oct. 6, 2020, Lighthizer said. He also said
ed down by the WTO. as he presented the world trade body’s revised forecast for merchandise trade growth amid that negotiations with the
It comes a year after an- the coronavirus pandemic. At left is Robert Koopman, WTO chief economist, and at right, WTO EU on a resolution to the
other ruling authorized the spokesman Keith Rockwell. Associated Press dispute are ongoing.
United States to slap penal- The WTO arbitrators said
ties on EU goods worth up co, rum and vodka, hand- to 2006. It is just one part least $5 billion in subsidies that the lifting of the tax
to $7.5 billion - including bags, motorcycle parts of a string of long-running that were prohibited under breaks was not enough to
Gouda cheese, single-malt and tractors. disputes between the two international trade rules. prevent the award in favor
whiskey and French wine - In the past in trade dis- plane-making giants at the The United States had ar- of the EU.
over the bloc's support for putes, the EU has sought to WTO. And it sets the stage gued that the illegal sup- European Commission Ex-
Boeing rival Airbus. roughly match products af- for what could become in- port merited no more than ecutive Vice President Val-
Now the EU can have its fected by previous Ameri- tense negotiation between $412 million in penalties, dis Dombrovskis said Tues-
own turn at trade punish- can sanctions — such as by the EU and U.S. to end what while the European bloc day's ruling move will al-
ment, and has already hitting U.S. distillers if French could become tit-for-tat had countered that they low the EU to slap tariffs on
been considering which wines were targeted. The transatlantic sanctions. deserved nearly $8.6 bil- American goods entering
American products it could bloc could aim for areas The arbitrators were tasked lion. The award in essence Europe, but "I would much
target. A preliminary list where Boeing planes or with setting a dollar value was nearly 10 times more prefer not to do so - addi-
that the bloc has released parts are made. in sanctions such as tariffs than what the U.S. had tional duties are not in the
suggests it could go after The latest WTO decision is that the EU could impose claimed, and under half economic interest of ei-
a wide range of products final, cannot be appealed, after the WTO's appellate that the EU wanted. The EU ther side, particularly as we
including frozen fish and and puts the final word on body found last year that had argued that tax breaks strive to recover from the
shellfish, dried fruit, tobac- a standoff dating back Boeing had received at for Boeing from Washing- COVID-19 recession."q

China FM calls US Indo-Pacific strategy a huge security risk

KUALA LUMPUR, Malaysia the U.S.," Wang said at a policy aims.
(AP) — The United States joint news conference with China's aggressive moves
poses a "huge security risk" his Malaysian counterpart, to assert its territorial claims
to Asia by pushing to boost Hishammuddin Hussein. in the South China Sea,
engagement with the re- "In this sense, this strategy through which a third of
gion, China's foreign min- itself is a huge security risk," global shipping passes,
ister said Tuesday during Wang said. have drawn rebuke from
a tour of Southeast Asia, Wang also urged Southeast the United States and be-
where Beijing and Wash- Asian nations, which are come a flashpoint for a
ington are locked in a bat- aiming to draw up a code region in which Southeast
tle for influence. of conduct with China in Asian nations Vietnam, the
Speaking in Malaysia, the South China Sea, to re- Philippines, Malaysia and
Wang Yi said the U.S.'s real move "external disruption" Brunei all have rival claims.
aim is "to build an Indo-Pa- in the disputed waters, but Hishammuddin said the dis-
cific NATO," in a strategy he did not elaborate. putes over the South Chi-
said harkened back to the Wang's tone is typical of na Sea must be resolved
Cold War. China's increasingly hard- peacefully through region- In this Sept. 28, 2020, file photo, Chinese Foreign Minister Wang Yi
Washington is trying to "stir line approach to disputes al dialogue. waves after delivering a speech at the Lanting Forum held at the
up confrontation among with Washington as it seeks The U.S. says its Indo-Pa- Ministry of Foreign Affairs office in Beijing.
different groups and blocs, to capitalize on political di- cific engagement frame- Associated Press
and stir up geopolitical visions within the U.S. and work supports sovereignty, By using the term "Indo- beyond China's backyard
competition while main- a perceived decline in transparency, good gov- Pacific," the U.S. also wants and the tiger economies of
taining the predominance America's global influence ernance and a rules-based to propagate the idea that East Asia to include the In-
and hegemony system of to advance its own foreign order, among other things. the region stretches far dian Ocean.q