Phil Hoganphotos: Yves Logghe / AP
The deal China and the United States forced Europe to threaten: a trade agreement may violate the rules of the world trade organization (WTO). This was stated by head of the European Union on trade Phil Hogan. His words are quoted by Bloomberg.
He called the condition of an agreement under which China needs to spend two years on American goods and services $ 200 billion, as an example of protectionism and “regulated trade”. According to him, if this is proven, Europe will report the agreement to the WTO.
“We do details have not analyzed the document, but will do it. If you find the problem with the observance of WTO rules — we will look into this. The EU is not very happy about this turn of events, but we will defend our economic interests if we have to,” said Hogan.
The European Commission will check the agreement China and the United States within a few days. If it detects a mismatch to the rules of free trade, it would take weeks or months to complete further steps with European governments, said Bloomberg’s anonymous source in the office of the European Union.
In December it became known that two of the three remaining judges of the court of Appeal WTO (body to resolve disputes among members) retired. United States for two years to block new elections, therefore, the court temporarily stopped the work from-for absence of quorum. According to the United States, the court has consistently exceeded its powers, and in international disputes always takes the side of the opponents of the Americans.
The US and China on 15 January signed an agreement on the first stage of a trade transaction. Under contract for two years, China will spend on goods and services from the US $ 200 billion, and the States in return to abolish duties on goods from China after establishing the second phase of the transaction.
Video, photo All from Russia.