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A surprising first round in Brazil’s presidential election is raising the prospect of a recalibration in trade policy, with a possible Flávio Bolsonaro government likely to deepen ties with Washington while preserving much of the country’s push to diversify markets.
The European Union’s demand that Britain raise tariffs on Chinese cars exposes an awkward truth about post-Brexit trade. Britain might have left the EU, but it cannot easily escape the bloc’s industrial policy. According to the Financial Times, EU officials have told Prime Minister Andy Burnham that Britain needs to align more closely with EU trade policy towards China if it wants British manufacturers to avoid discriminatory treatment under the bloc’s proposed “Made in Europe” rules. The...
The European Commission is pressing China for progress by next month to address the widening EU-China trade imbalance, and raising the possibility of new protectionist trade policy. The deadline raises a question: how should China and its trading partners address perceived economic imbalances while sharing the benefits of Chinese industrial competitiveness? China’s merchandise trade surplus approached US$1.2 trillion last year even as other exporting economies press for controls. “Overcapacity”...