Global trade disputes draw retaliation and renewed negotiations
Beijing barred its firms from an EU subsidy probe, and CK Hutchison launched an arbitration claim against Panama. In contrast to these escalations, the US and Canada are reportedly close to a deal reducing bilateral steel and auto tariffs.
Geopolitics··Midday
China and EU probe
Geopolitical trade tensions continue to mount across multiple continents as states leverage economic and legal countermeasures. In a significant escalation, China's justice and commerce ministries barred organizations and individuals from assisting the European Commission's foreign-subsidies investigation into JD.com. Beijing characterized the probe into the proposed takeover valued at 2.5 billion dollars as an undue extraterritorial measure, marking its second such blocking order.[1]
Panama Canal arbitration
Meanwhile, infrastructure investments remain a flashpoint in international trade relations. Hong Kong conglomerate CK Hutchison initiated international arbitration proceedings against Panama seeking damages of more than 1.5 billion dollars. The dispute follows a January supreme court ruling that annulled Panama Ports Company's operational contract for the Balboa and Cristobal terminals, a decision that emerged after former US President Donald Trump claimed China effectively controlled the strategic waterway.[2]
US-Canada deal
In contrast to these intensifying blockades and legal disputes, the United States and Canada appear close to resolving a major bilateral confrontation. Following a third day of talks and the suspension of a threatened tariff wave, the two governments are reportedly finalizing a deal to reduce US duties on Canadian steel from 50 per cent to 25 per cent and on auto imports from 25 per cent to 15 per cent.[3]
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