Carl Mortishead in the Times argues that Barack Obama's tyre tariff handout to the Steelworkers Union and the looming backlash from Beijing pales in comparison to the tension over trade between India and China. Indian toy, vitamin and dairy producers argue that they cannot compete with Chinese imports (e.g. cheaper prices for Indian consumers) and used all sorts of spurious arguments to get the Indian government to introduce barriers to trade which exclude these cost-cutting rivals from the market. The Chinese are justifiably furious about these "invisible trade barriers". $52 billion worth of trade between the two countries in 2008 has already fallen by a third this year because of the recession -- but also because of the political response to it.
This is just one of the bilateral flaps between major economies that is threatening to yet again scupper positive negotiation to the Doha Development Round at the World Trade Organisation, just as WTO officials were claiming that new breakthroughs had been made.
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