EU blocks Ukraine grain imports to 5 countries, including Poland

The European Union has again extended a ban on Ukrainian grain imports to five countries, including Poland.

The move follows anger and protests from Polish farmers who were left with unsold grain or forced to sell it cheaply when faced with lower Ukrainian prices.

Undersecretary of State in the Ministry of Agriculture and Rural Development, Krzysztof Ciecióra explained: "We have fulfilled their main demand, i.e. stopping the pressure of grain imports from Ukraine. 

"Today there is no such permission. It is not legal until September 15 at least. These grains will not flow to Poland. Only transit is possible."

Although the decision of the EU, supported by the government, brings temporary relief, it was not met with much approval from Polish farmers, who fear that in a few months, they will face the same problems again.

Read more at: https://www.euronews.com

EU-US Trade Relations: Six Ways How Trump Gets Trade and Europe Wrong - by Holger Schmieding

U.S. President Donald Trump is bringing the world close to a genuine trade war. Judging by his own rhetoric, Trump gets key trade issues wrong on at least six counts:

1. If China poses a problem, why not join forces with the EU?

In his dealings with China, Trump has half a point. China ought to change some of its practices, including its penchant for forced technology transfer and its habit of discriminating against foreign companies.

These legitimate concerns do not apply to the EU, however. Unfortunately, Trump seems to have rejected the original EU offer to jointly lean on China to mend its ways.

2. Can trade barriers reduce a U.S. deficit in a meaningful way?

Not really. The U.S. current account deficit of 2.3% of U.S. GDP in 2017 is not the result of supposedly unfair practices of trading partners.

Instead, the U.S. deficit reflects the country’s traditionally strong appetite for imports as well as the fact that the United States does not save enough to finance its investments at home. Short of actually halting imports, U.S. trade barriers will not change these factors very much.

3. Does the EU run a surplus with the U.S.?

Trump complains about too many German cars on Fifth Avenue — although half of those cars may actually be built in the United States.

Still, the United States indeed imports more goods from the EU than it sells in Europe. But that is only half the truth. The U.S. goods deficit is offset by a small surplus in services and a big surplus in income (largely from the Netherlands where some U.S. companies seem to pool their EU-wide profits).

As the chart below shows, the United States has actually run a small current account surplus with the EU since 2009. What Europe earns by selling goods to the United States, it spends on licensing fees for U.S. technology and on U.S. services. Nothing unfair here.



4. Is the EU refusing to cut tariffs on U.S. exports?

President Trump complains that EU tariffs are high. For cars, that is true. For trucks, however, it is the other way around. On average, EU tariffs are close to those of the United States.

In 2017, Trump rejected the TTIP deal that would have abolished almost all tariffs between the United States and the EU. For that, he can only blame himself.

5. Talk to Brussels, not Berlin and Wolfsburg

Trump’s ambassador to Berlin, Richard Grenell, has reportedly offered German car companies to abolish all car tariffs between the two countries on a bilateral basis.

But such a “divide and rule” attempt will not work. On trade, only the EU can and will strike deals, not Berlin. Moreover, as a result of the recent trade tensions, the EU seems more united on trade than on most other issues.

6. Can the U.S. bully the EU on trade?

The EU as such is not a strong force in global politics. But its sheer market size makes the EU the top trading power of the world.

As a result, the EU is less inclined than any other region to give in to trade threats.
Conclusion

A well-balanced deal to liberalize U.S.-EU trade is possible, but only if Trump’s advisors start to understand the EU — and then manage to convince their president.

Read more: Six Ways How Trump Gets Trade and Europe Wrong - The Globalist

German imports rise to highest level in 23 years in February

German imports climbed to their highest level since reunification while exports fell in February, in a sign that domestic demand in Europe’s largest economy is gathering pace.

Figures from the Federal Statistics Office showed seasonally-adjusted imports climbed by 0.4 percent to €77.6 billion, their highest level since the office started compiling seasonally-adjusted data for reunified Germany in January 1991.

Imports had been expected to increase by a smaller 0.1 per cent, according to a Reuters poll.

Exports dropped by a larger-than-expected 1.3 per cent, with economists putting this down to turbulence in emerging markets and the Crimea crisis. They had been forecast to fall by 0.5 per cent.

“Imports grew because consumers are consuming more and companies are investing more. This trend of imports growing more quickly than exports should continue,” said Christian Schulz, senior economist at Berenberg Bank.

Read more: German imports rise to highest level in 23 years in February - Economic News | Ireland & World Economy Headlines |The Irish Times - Wed, Apr 09, 2014

Horticulture: The Netherlands, Spain and China, largest horticultural importers

In the period between 2009 and 2012, the Netherlands became the largest worldwide exporter and re-exporter of fruit and vegetables (including citrus), according to data provided by the Statistics Division of the United Nations.

Taking 2012's exports and re-exports into account, the Netherlands handled 14.6% of the world's total, followed by Spain, with 12.1%, and China, with 10.9%.

The fourth place in the ranking was for Mexico (9.7%), followed by the United States (8.3%), Canada (5%), France (4.4%), Belgium (3.7%), Italy (2.8%) and Germany, with 1.9%. The remaining 26.5% is distributed between other countries.

Read more: The Netherlands, Spain and China, largest horticultural importers

Eurozone: Global Port Tracker report calls for significant 2012 export and import declines - by Jeff Berman

The ongoing economic malaise in Eurozone nations is not likely to see any meaningful signs of improvement in the near future. That was the main message in the most recent edition of the Global Port Tracker report from Hackett Associates and the Bremen Institute of Shipping Economics and Logistics.

Ports surveyed in this report include the six major container reports in North Europe: le Havre, Antwerp, Zeebrugge, Rotterdam, Bremen/Bremerhaven, and Hamburg.

“Trade volumes remain on the decline,” said Ben Hackett, president of Hackett Associates, in a statement. “North European import growth rates are sliding towards flat to negative territory and exports have been flat for some months. The latest news from the industrial heartland of Germany suggests that we shall see exports declining in the coming six months.”

Read more: Global Port Tracker report calls for significant 2012 export and import declines - Article from Logistics Management

China lashes out against U.S. bill aimed at currency manipulators

China on Tuesday blasted a proposed U.S. bill that would punish countries for undervaluing their currency by saying it would undermine the global economy and potentially lead to a trade war.

China’s central bank and ministries of commerce and foreign affairs released separate statements criticizing the bill, which is being championed by Democratic lawmakers who hope to protect U.S. jobs by slapping tariffs on Chinese imports.

Such a move “seriously violates rules of the World Trade Organization and obstructs China-U.S. trade ties,” said Foreign Ministry spokesman Ma Zhaoxu in a statement posted on the Chinese government’s official website.

For more: China lashes out against U.S. bill aimed at currency manipulators - latimes.com