The most important event of the week is 2021 Trade Secrets Summit On Thursday, it appeared again in virtual form this year. There is a wonderful program of various dialogues and debates on transatlantic relations, business and supply chains, trade and climate. I mean, we would say, but in fact, there is. Please refer to the link above to register. It features an interview between today’s trade secrets author and European Commission Trade Director Valdis Dombrovskis, focusing on the relationship between the EU and the United States-which happens to be the subject of today’s main newsletter.

Another thing that caught our attention in recent days: Joe Biden Blame the reporter Because the supply chain problem is not fully explained. Maybe the president is only referring to the White House press corps, which may or may not be true. But what about the media elsewhere?try here, here, here, here with here And, did you know, browse past directories hereWe know that trade secrets are behind the paywall, but the White House can definitely subscribe to FT. Call it stimulus or infrastructure projects or other things. Please do it yourself.

today’s Concession waters Focus on another victim of global supply chain barriers: the coatings industry.

Temporary demands for steel transactions

Traders now have a week to digest relevant trade End the dispute between the EU and the United States over the U.S. Article 232 steel and aluminum (aluminum, anyway) national security tariffs. One conclusion everyone should agree on: The tariff quota solution they proposed is not pretty.A huge Complex system Sub-quota for dozens of independent products seems likely to create more job security for expensive trade lawyers and lobbyists-the next generation Bob Lighthizers You can start queuing to visit the Porsche sales center-instead of actual workers in the steel and aluminum industries on both sides of the Atlantic.

Two problems have arisen. One, is this still a good idea? Second, does it herald a new constructive era in transatlantic trade relations? If we had to judge, we would very reluctantly, mutter to ourselves in an embarrassing way, with a deep sense of shame and self-loathing, and answer the first yes. But we, or at least the author today, are still skeptical of the latter.

If you want to understand why this transaction is economically stupid and legally suspicious, then the good guys at the Cato Institute, the guardians of the free trade flames of the Washington think tank world, have Thunderous majesty Walk down from the pulpit as usual. What we want to add is that this is detrimental to the credibility of the EU. In this case, the EU has always opposed tariff quotas and similar regulated trade, and has docilely made concessions.

But in reality, Geneva is unlikely to file a lawsuit against the deal, just like similar jury manipulation arrangements against Canada and Mexico.Through the suspension of the EU Case against the United States In the World Trade Organization, the agreement also avoids the potentially explosive outcome of the dispute settlement panel ruling in favor of the European Union, thereby making a second guess about the United States’ judgment on its own national security needs. (Similar cases of other complainants are still outstanding, certainly. )

Although Brussels may have to swallow some pride on this occasion, one of the other transatlantic repair deals this year is to suspend the long-running agreement Airbus-Boeing litigation, In fact, it is more beneficial to the EU. (The WTO dispute settlement system has authorized Washington to retaliate against Brussels for imposing tariffs and vice versa.)

We really don’t want to admit this, but given the turbulence in the world trading system, even these messy temporary transactions may be better than continuing tariff wars and politically dangerous litigation.Like former British Prime Minister Harold Macmillan, fabrication is better than judgment May have put it.

It is now widely criticized that Biden’s trade policy is Donald Trump’s, but there is no over-breathing rhetoric. In terms of his erroneous analysis of the impact of trade on the American economy and American workers, this is a reasonable accusation. But we think the difference in his political strategy is very meaningful. Trump’s instinct (or rather, one of his multiple competing instincts) is to launch a trade war in all directions for purposes. The Biden administration will pass any possible one-off transaction (steel/aluminum, Airbus-Boeing, Digital Service Tax) Within its assessment of domestic political feasibility.

The problem is that the assessment currently does not allow too much. It certainly does not seem to restore the WTO in any meaningful way.The statement made by U.S. Trade Representative Katherine Tai on this issue is to avoid a master class on substance, and the incoming U.S. ambassador to the WTO did say during the Senate Confirmation hearing She wants to revitalize the organization’s appellate body, a promise that, as usual, is conditional on some major but ill-defined reforms.

Now, of course, steel and aluminum trading has forward-looking and potentially constructive elements: creating a carbon club for low-emission steel producers. However, this sounded the alarm about WTO compatibility and whether it will actually be. Make a difference To discharge. (We will return to this question in due course.) If the United States believes that the Steel Carbon Club is a substitute for the EU’s carbon border adjustment mechanism, and it is worried that this will affect US exports to Europe, then Rupert Schlegelmilch, a European Commission Trade Office Among the senior officials in charge of relations with Washington, there are Definite answer.

Likewise, the Transatlantic Trade and Technology Committee is a thing that sounds very constructive.But as we have Written beforeThe officials concerned played down the possibility of rapid convergence on anything other than minor issues.

This is how we now read the state of the transatlantic game. Biden is keen to cooperate with Europe, but his domestic political calculations allow him to do anything substantively with very limited space, except for temporary solutions to urgent problems. Pay attention to the many performative but ultimately ineffective aerobics.

Concession waters

Harry Dempsey has one Great work Another industry suffers from global supply chain barriers: paint.

Before reading, we don’t know how complicated the chain involved in producing a can of paint is actually. Like other industries, it is also affected by rising costs of key materials. As shown in the picture below, paint is indeed a frustrating picture. Claire Jones

Trade ties

FT has one Big reading About how Tourism Prepare for the world after the pandemic. Vox.EU has one Obituary Ronald Findlay, one of the great theorists of trade economics.

The latest episode of the podcast Trade negotiations Give your own opinion exist EU-U.S. steel and aluminum transactions.

As the weather gets colder, Asian diners looking forward to sukiyaki and hot pot may be disappointed because Beef exporter In the U.S., Brazil and Australia Fighting disease outbreaks and labor shortages (Nikkei Index, U.S. dollar).

China’s new data transmission rules will Increase cost (Nikkei, $) has a significant impact on foreign companies and conflicts with Beijing’s recent application to join CPTPP And the digital economy cooperation agreement. Alan Beatty, Francesca Regalado and Claire Jones

Trade Secrets Summit-November 11, 2021