Australia takes China to WTO over its trade sanctions on Australian wines

Coalition says despite going to the World Trade Organization it ‘remains open to engaging directly with Beijing to resolve the issue’

Australia is lodging a formal complaint with the World Trade Organization over China imposing anti-dumping duties on Australian wine exports, the federal government announced on Saturday.

The decision follows “extensive consultation with Australia’s winemakers”, it said, adding: “Australia remains open to engaging directly with China to resolve this issue.”

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China rushes through law to counter US and EU sanctions

Foreigners could be placed on an anti-sanctions list and denied entry into China or expelled from the country

China has passed a law to counter foreign sanctions in response to US and EU pressure over trade, technology, Hong Kong and Xinjiang.

Individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities could be put on an anti-sanctions list and may be denied entry into China or be expelled from the country. Their assets within China may be seized or frozen and they could be restricted from doing business there.

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UK strikes trade deal with Norway, Iceland and Liechtenstein

Digital documents to be used to cut post-Brexit paperwork under agreement hailed by Liz Truss as ‘massive boost’

A trade deal struck with Norway, Iceland and Liechtenstein with provisions for digital paperwork to cut down the time and costs of post-Brexit border bureaucracy has been championed by the international trade secretary, Liz Truss, as a “major boost”.

After months of difficult talks, the comprehensive trade deal was hailed by both the UK and Norwegian governments as being pioneering in its scope and measures, with tariff-free trade in industrial goods secured.

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From a forest in Papua New Guinea to a floor in Sydney: how China is getting rich off Pacific timber

China is the major buyer of wood from Pacific nations like PNG and Solomon Islands, which are implicated in illegal or unsustainable logging

  • Read more of our Pacific Plunder series here

An illegally logged tree, felled in the diminishing forests of Papua New Guinea, may well end up becoming floorboards in a Sydney living room, or a bookcase in a home in Seattle.

Illegal logging contributes between 15% and 30% of the global wood trade, according to Interpol. China is a major buyer of the world’s illegal timber, according to environmental groups, especially from Pacific nations like PNG and Solomon Islands, which are implicated in illegal or unsustainable logging.

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US to sue Canada over dairy practices as hopes for better trade relations fade

US trade representative announced plans to sue as Canadian officials face growing tensions with US

After a tumultuous four years living next door to Donald Trump, many Canadians had hoped that relations with their closest neighbour would mend under Joe Biden. The former president had slapped tariffs on Canadian steel and aluminum, threatened levies on the automotive sector, and called the prime minister, Justin Trudeau, “two-faced”.

But in recent weeks, Canadian officials have faced growing tensions with the US under Biden as leaders on both sides confront domestic political challenges.

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The Guardian view on post-Brexit trade: only hard choices are left | Editorial

Boris Johnson likes to pretend that free-trade deals are easy and have no downside. Talks with Australia are proving him wrong

There is agreement across the Conservative party that free trade is a good thing, in theory. Unity is harder to sustain over practical detail, as has become clear through negotiations on a deal with Australia.

The agreement has immense symbolic value. It would be the first substantial post-Brexit deal that was not a rollover of terms that were available under EU membership. The prime minister sees it as the enactment of his “global Britain” rhetoric. The government is determined to have such a trophy ready in time for next month’s G7 summit.

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Beijing accuses G7 ministers of interfering in China’s affairs

Foreign ministry responds to west’s human rights claims, saying countries should ‘face up to their own problems’

China has rejected accusations of human rights abuse and economic coercion, made by G7 foreign ministers, accusing them of “blatantly meddling” in China’s internal affairs, calling their remarks groundless.

“Attempts to disregard the basic norms of international relations and to create various excuses to interfere in China’s internal affairs, undermine China’s sovereignty and smear China’s image will never succeed,” said the foreign ministry spokesperson, Wang Wenbin. “They should not criticise and interfere with other countries with a superior mentality, and undermine the current top priority of international anti-epidemic cooperation.”

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EU ‘suspends’ ratification of China investment deal after sanctions

Massive trade agreement stalls after tit-for-tat sanctions prompted by Chinese policy in Xinjiang

The European Commission has said that efforts to ratify a massive investment deal with China have been in effect suspended after tit-for-tat sanctions were imposed over China’s treatment of its Uyghur population in March.

“We now in a sense have suspended … political outreach activities from the European Commission side,” said the commission’s executive vice-president, Valdis Dombrovskis, on Tuesday. He said that the current state of relations between Brussels and Beijing was “not conducive” for the ratification of the deal, which is known as EU-China comprehensive agreement on investment.

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UK dairy firms try to count the cost of churn in post-Brexit trade

Country Milk’s trade with the EU has nosedived with the dairy industry particularly badly affected by new customs rules

A small error in the paperwork – a box ticked by mistake – and the tanker of butter oil was held at French customs for five days, with veterinary authorities at the border threatening to destroy it. The debacle nearly cost the tanker’s exporter, dairy company County Milk, a six-figure sum. After fraught negotiations, the cargo was eventually repatriated.

“You don’t need too many of those to be destroyed and you are in dire straits,” says Phil Langslow, trading director at County Milk, the UK’s largest privately owned dairy ingredients business.

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FTSE 100 closes above 7,000 for first time since Covid crash

Shares rise by more than 30 points as China reports record economic growth

The FTSE 100 has closed above 7,000 for the first time since the Covid-19 pandemic triggered a collapse in global markets last year, driven by rising hopes for the world economy after record growth in China.

The index of leading UK company shares ended the day up 36 points on Friday, or 0.5%, at 7,019, the highest level since late February 2020 when the first wave of Covid-19 sent shock waves through financial markets around the world.

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From bikes to booze, how Brexit barriers are hitting Anglo-Dutch trade hard

A new survey of UK and Netherlands firms shows two-thirds think our departure from the single market has had a negative effect

It is now three months since Boris Johnson declared that his Brexit deal would be unalloyed good news for UK businesses and consumers alike. But the true picture is graphically illustrated by a new survey of 125 UK and Dutch firms that do business between the two old and close trading nations.

Whether it be trade in chocolate bars, electric bicycles or malt whisky distilled in Scotland, the reality for exporters, importers and customers infuriated by orders being delayed is mostly negative.

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Brexit: Scottish dog food firm relocates to France due to export red tape

Owner says he decided ‘enough was enough’ after encountering more and more trade barriers

The founder of a Scottish dog food business has told how Brexit forced him to move to France after his exports to the EU were halted because of the new trade barriers in place since 1 January.

After 10 weeks of daily calls and emails to government representatives, who he said were “absolutely terrible”, Antoon Murphy said he was left with no other option than to relocate or face losing the business.

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Suez canal: Syria ‘rations’ fuel as efforts to free stuck ship fail

Syria oil ministry restricts supply as canal chief says ‘technical or human errors’ may have been behind stranding of the Ever Given

Syrian authorities say they have begun rationing fuel as the blockage of the Suez canal stretched into a sixth day, delaying vital shipments and worsening the country’s oil shortages.

Syria has been mired in civil war since 2011 and faces a severe economic crisis. It had already announced a more than 50% rise in the price of petrol in mid-March.

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The Guardian view on China, Xinjiang and sanctions: the gloves are off | Editorial

Beijing wants to silence critics of its treatment of Uighurs. But the impact will be broader

China’s response to criticisms of horrifying human rights violations in Xinjiang is clear and calculated. Its aims are threefold. First, the sanctions imposed upon individuals and institutions in the EU and UK are direct retaliation for those imposed upon China over its treatment of Uighurs. That does not mean they are like-for-like: the EU and UK measures targeted officials responsible for human rights abuses, while these target non-state actors – elected politicians, thinktanks, lawyers and academics – simply for criticising those abuses.

Second, they seek more broadly to deter any criticism over Xinjiang, where Beijing denies any rights violations. Third, they appear to be intended to send a message to the EU, UK and others not to fall in line with the harsher US approach towards China generally. Beijing sees human rights concerns as a pretext for defending western hegemony, pointing to historic and current abuses committed by its critics. But mostly it believes it no longer needs to tolerate challenges.

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How the Suez canal blockage can seriously dent world trade

Analysis: 12% of global shipping uses the canal with any delays disrupting supply chains, fuelling shortages and hiking prices

World trade’s pre-eminent shortcut – the Suez Canal – is facing “massive” disruption which could cause cargo delays around the globe, shipping experts warned on Friday.

The narrow, 120-mile passage of water linking the Red Sea and the Mediterranean allows ships of colossal proportions to navigate a relatively direct route from Asia to Europe, rather than taking a 3,500-mile diversion around Africa.

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Suez canal: Dutch and Japanese teams brought in to help free ship

Salvage teams from Netherlands and Japan called in to help refloat Ever Given, which is blocking canal

Salvage teams from the Netherlands and Japan have been enlisted to redraw plans to free a giant container ship blocking the Suez canal, as fears grew that the operation could take weeks.

Taiwan’s Evergreen Marine Corp, which leased the vessel, said the Dutch firm Smit Salvage and Japan’s Nippon Salvage had been appointed by the ship’s owner and would work alongside its captain and the Suez Canal Authority (SCA) on a plan to refloat the ship and let traffic resume on one of the world’s key trade routes.

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EU to widen criteria for possible Covid vaccine export bans

Bloc expected to assess countries’ Covid vaccination coverage and record in facilitating exports to EU

The EU is expected to take into account the level of vaccination coverage in a country and its record in facilitating exports to the bloc when deciding on whether to prohibit individual vaccine shipments to the UK and elsewhere.

The revision of the export authorisation scheme, widening the criteria that will guide Brussels’ decisions on export requests, is due to be announced on Wednesday. EU leaders will then on Thursday discuss going further in controlling vaccine distribution when they meet by videoconference.

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Century-old olive trees felled as Spain’s farmers try to cut costs

Plunge in global olive oil prices means hard decisions for Spanish olive oil producers

Century-old olive trees are being chopped up to use as firewood or sold off as garden ornaments as some in Spain’s olive oil industry turn to younger, more productive trees in hope of lowering costs.

In recent years the sector in Spain has been left reeling; a plunge in global olive oil prices was followed by a punishing 25% tariff levied by the US on Spanish olive oil. After prices sank to levels that left many struggling to break even, the industry has slowly recovered, though prices remain shy of 2018 levels.

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Brexit: trade survey finds 74% of British firms hit by delays with EU markets

Brexit red tape and disruption to global trade from pandemic leaves businesses ‘severely strained’

Three-quarters of British manufacturers are struggling to cope with delays in moving goods in and out of the EU amid continuing disruption caused by Brexit and the Covid pandemic, industry figures said.

Two months after the UK left the EU on trade terms agreed by Boris Johnson’s government, research from the manufacturing trade group Make UK has shown that 74% of firms in a survey of more than 200 leading industrial companies are facing delays with EU imports and exports.

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Ports feel the chill as trade re-routes around Brexit Britain

In Holyhead, traffic has fallen 50% as hauliers stymied by Brexit find their way from Ireland to France without entering the UK

Perched on the shores of Anglesey, the island linked by road bridges to the north-west coast of Wales, Holyhead’s geography has given it a leading role in British-Irish trade since the early 19th century.

About 50 miles directly across the Irish Sea from Dublin, a journey of just three-and-a-quarter hours by ferry, Holyhead was until December the second busiest roll-on roll-off port in the UK after Dover. About 450,000 trucks rumbled through each year on their way to Dublin, with cargoes of meat and agricultural produce, secondhand cars and items destined for the shelves of Irish supermarkets.

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