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CLIPPING INTERNACIONAL NEGINT Brasília, 26 de julho de 2018

Índice I. OMC _______________________________________________ 2 WTO chief sees trade war ending in political talks ______________________ 2 Trump says EU and U.S. will work to reform WTO, resolve steel and aluminum tariffs _________________________________________________________ 3 II. NEGOCIAÇÕES REGIONAIS E BILATERAIS _________________ 4 Tokyo shares close mixed on U.S.-EU trade agreement, BOJ stimulus change 4 US-EU trade agreement lacks specifics and fails to eliminate issues with China 5 III. OUTROS ____________________________________________ 8 Mercosur y Colombia suscribieron Protocolo de Comercio de Servicios que potenciará la exportación de empresas uruguayas ______________________ 8 Cumbre de Alianza del Pacífico busca unirse al Mercosur _________________ 9 Brazil judge denies bid to protect Embraer jobs ________________________ 9

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I. OMC WTO chief sees trade war ending in political talks Reuters (Reino Unido) The nascent global trade war will have to be ended by a political agreement between world leaders, because continuing down the current path will only damage the global economy, the head of the World Trade Organization said on Wednesday. WTO Director General Roberto Azevedo said that world leaders needed to listen to each other and try to fix the problem, rather than resorting to tit-for-tat retaliation, or launching legal disputes. “On the trade war and how to stop it... it is not something a technical measure here or there is going to solve. This is a political situation,” he told reporters in Geneva. “A solution can only be found through high-level discussions and engagement.” U.S. President Donald Trump accused China on Wednesday of targeting American farmers in a “vicious” way and using them as leverage to get concessions on trade a day after the administration announced a $12 billion farm aid package. Many leaders already realized that they needed to resolve the situation, but there were different views about the best policies to boost growth and create jobs, and the discussion of those views was going on in the United States, Azevedo said. “Clearly the administration has its own views about how to achieve that, and I suppose there will be a domestic debate over this and at some point in time they will figure it out.” The WTO itself has been caught in the crossfire of the trade war, triggered by an unprecedented barrage of tariffs erected by Trump and fueled by retaliatory moves by China and threats and counter-threats between Beijing and Washington. Trump has blocked new appointments to the WTO’s supreme court and has cited national security concerns to justify tariffs on steel and aluminum, outraging foes and allies alike.

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But Azevedo said the WTO system was “not paralyzed yet” and he was confident it would survive, because otherwise there would be a worst case scenario with no rules, only “the law of the jungle”. “Because then, I guarantee you, investors are going to pull back, the economy is going to lose steam and over time jobs will be lost, millions of jobs will be lost.” Conversations to resolve the problems of the WTO continued, but were not yet advanced enough to see light at the end of the tunnel, he said. Azevedo said he was talking to leaders of WTO member states to try to find solutions. He had not met Trump, who is widely seen to have started global turbulence single-handed since he took office, but he said he had very good and frequent communications with U.S. Trade Representative Robert Lighthizer. “I don’t think that there is anything missing in my dialogue with the United States.”

Trump says EU and U.S. will work to reform WTO, resolve steel and aluminum tariffs Global News (Canadá) U.S. President Donald Trump said Wednesday it would be working with the European Union and other partners to reform the WTO and address unfair trading practices. He also said they would work resolve the steel and aluminum tariffs and other retaliatory tariffs.

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II. NEGOCIAÇÕES REGIONAIS E BILATERAIS Tokyo shares close mixed on U.S.-EU trade agreement, BOJ stimulus change Xinhua (China) Tokyo shares closed mixed Thursday, after leaders of the United States and the European Union agreed to work toward eliminating tariffs while buying mood was offset by a report that the Bank of Japan will consider reducing purchases of exchange-traded funds tracking the Nikkei 225 index and allocate more money to Topix-related ETFs. The 225-issue Nikkei Stock Average ended down 27.38 points, or 0.12 percent, from Wednesday at 22,586.87. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 12.3 points, or 0.7 percent, higher at 1,765.78. Trading volume on the main section came to 1,252.81 million shares, up from Wednesday's 1,138.15 million shares. Among all shares listed on the First Section, advancing issues outnumbered decliners 1,733 to 309, with 61 ending the day unchanged. Decliners were led by pharmaceutical, information and communication, and securities issues, while gainers were led by mining, land transportation, and glass and ceramic product issues. The day's turnover was around 2,395.7 billion yen (21.65 billion U.S. dollars).

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US-EU trade agreement lacks specifics and fails to eliminate issues with China CNBC (Estados Unidos) U.S. President Donald Trump called it a "very big day for free and fair trade" but his meeting with the EU has failed to provide concrete details on how both sides will fix their differences over trade, analysts said. Trump received Jean-Claude Juncker, the chief of the EU's executive arm, the European Commission, Wednesday to discuss trade issues given a recent deterioration in their relationship. The White House shook the EU by imposing steel and aluminium tariffs at the start of June and by threatening new duties on its car industry — a key engine for the European economy. What has been agreed? In a joint press conference, both leaders promised to work towards zero tariffs on nonauto industrial goods; to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products and soybeans. They also agreed to reform the WTO and that the European Union will buy more liquefied natural gas from the United States. Most importantly, they agreed to not impose new tariffs on one another while they work together on these issues. "The U.S.-EU agreement to negotiate tariff reductions and to increase U.S. exports to the EU represents an incremental de-escalation of trade tensions between the two sides and lowers the risk of new U.S. tariffs on auto imports, at least in the near term," Goldman Sachs said in a note Wednesday. The bank added, however, that "the news is not uniformly positive." "The lack of specifics in today's U.S.-EU announcement raises the possibility that the negotiations could falter at a later stage, as U.S.-China negotiations did earlier this year." The U.S. claimed last May it had put the trade war with China "on hold" as both countries initiated meetings to discuss their trade relationship. However, such talks ended in early June without any agreement and with the Chinese authorities refusing to buy more American products. 5

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Trump and Juncker also vowed Wednesday "to resolve the steel and aluminium tariff issues and retaliatory tariffs" but without adding any detail on how that's going to take place. The EU imposed duties on $3.3 billion worth of American goods last month in response to the metal tariffs Trump abruptly imposed. James Nixon, chief economist at Oxford Economics, also told CNBC that there is "massive uncertainty" as to what Wednesday's deal means. He added, however, that it seems the White House is returning to a "kind of multilateral relationship and trade dealings, which to be honest we haven't seen from the United States yet." Elsewhere, UniCredit called the deal "vague" and one that "failed to elicit excitement among investors in Asia." Is there a winner? "The real winner here would appear to be the European Union. The U.S. auto tax threat was reversed in exchange for nothing that means anything," Paul Donovan, chief economist at UBS Global Wealth Management said in a note Thursday morning. According to Donovan, even though the EU promised to buy more soybeans, it doesn't actually have the power to force European farmers to purchase more from the United States. "The U.S. is already the largest exporter of soybeans to the EU. There are no subsidies, trade taxes or quotas on soybeans in the EU. Private farmers decide whether to buy more soybeans or not," he said. However, some argue that Trump is in fact the winner out of Wednesday's meeting. "For Trump not to follow through on a threat is not a concession! Instead it rewards Trump's behavior: he can bully trading partners, even those of equal size - like the EU with threats of tariffs. And that's problematic for future EU-US trade discussions and global trade," Rem Korteweg, head of the Europe in the World unit at think tank Clingendael, said on Twitter. What about China? "We do not believe that recent positive developments regarding U.S.-EU trade should be interpreted as a reduction in risk in the other major trade dispute, with China. In fact, they likely mean the opposite," Goldman Sachs said Wednesday.

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China has tried to get closer to Europe amid the several tariffs that Trump has imposed on Beijing. In fact, both Europe and China agreed earlier this month to exchange some market access and thus speed up negotiations towards an investment agreement. But China might ultimately find itself isolated if the EU and the U.S. stick closer together. According to Goldman Sachs, the Trump administration might also use the agreement with Europe "to win concessions from other trading partners, like China." China has put forward retaliatory tariffs against the U.S. worth $34 billion after the White House advanced with the same amount of duties on its imports earlier in July. China raised duties on American goods such as pork, electric vehicles and soybeans. Europe sighs For now, Europe can breathe a sigh of relief now that the imminent threat of getting slapped with 20 percent tariffs on its carmakers has disappeared. This could prove an economic boost to the region where business confident has been hit by trade fears. Holger Schmieding, German economist at Berenberg Bank said in an email that if the U.S. and Europe take negotiations over trade seriously "euro zone business confidence can recover this autumn." "This should allow the euro zone to overcome its current soft patch with a return to annualized growth rates of around 2 percent from the fourth-quarter onwards," he said. Data out on Wednesday showed a slowdown in confidence in the largest European economy – Germany. According to the Ifo institute's monthly business climate data business confidence fell in July to 101.7 from 101.8 a month before. Business expectations also dropped to 98.2 from 98.5. Analysts said that trade tensions between Europe and the U.S. were at the forefront of the deteriorating business climate. Schmieding described the agreement between Trump and Juncker as "not really a deal yet", "but it is a step away from the brink."

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III. OUTROS Mercosur y Colombia suscribieron Protocolo de Comercio de Servicios que potenciará la exportación de empresas uruguayas Presidencia del Uruguay (Uruguai) En el día de la fecha, en el marco de la Cumbre de la Alianza del Pacífico en Puerto Vallarta, México, se suscribió el Protocolo de Comercio de Servicios entre el Mercado Común del Sur (Mercosur) y Colombia. El acuerdo es el primer Protocolo Adicional al Acuerdo

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Complementación

Económica

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la

Asociación

Latinoamericana

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Integración (Aladi) n.° 72, suscripto por Mercosur y Colombia el año pasado. La importancia de este instrumento radica en la inclusión de sectores de real interés exportador para nuestro país, que ofrecerán más oportunidades de negocios a las empresas y a los profesionales uruguayos. De esta forma, además, el protocolo ayudará a disminuir la concentración de las exportaciones uruguayas de bienes a Colombia, posibilitando el desarrollo del sector servicios, especialmente en áreas en las que Uruguay es competitivo y cuenta con potencial exportador. Mediante este instrumento, el Mercosur estará cumpliendo con la meta de profundizar relaciones comerciales con los países miembros de Aladi y de estimular el comercio regional de servicios, proceso que comenzó con la suscripción del Protocolo sobre Comercio de Servicios Mercosur-Chile, que se encuentra en vigor en nuestro país desde el 2012. Implica, asimismo, un paso más hacia el acercamiento del bloque con Colombia, país miembro de la Alianza del Pacífico. Este acuerdo otorga trato preferencial al comercio de servicios, negociado bajo la misma metodología del Acuerdo General sobre el Comercio de Servicios de la Organización Mundial del Comercio (AGCS, también conocido como GATS, por su sigla en inglés).

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Cumbre de Alianza del Pacífico busca unirse al Mercosur CNN (Estados Unidos) Perú, México, Colombia y Chile buscan unirse a Argentina y Brasil con una alianza económica que podría fortalecer a toda la región. El presidente de México, Enrique Peña Nieto, llamó a otras naciones para que se incluyan como socios para ampliar objetivos hasta el 2030.

Brazil judge denies bid to protect Embraer jobs Reuters (Reino Unido) A Brazilian labor judge has rejected a call to make Boeing Co’s proposed takeover of most of planemaker Embraer’s commercial jet unit dependent on a pledge to preserve all local jobs at the company. The proposed takeover has set off concerns among unions and political allies that Boeing would slash Embraer’s local workforce once it assumed control of the venture. Boeing, Embraer and the Brazilian government have so far declined to provide any assurances about jobs. A representative for Embraer declined to comment on the judge’s decision on Tuesday to deny a request for a court injunction, which would have forced Boeing to safeguard all current Brazilian jobs at Embraer. Boeing also declined comment. The injunction request was filed by Brazil’s labor prosecutors, a special group that investigates potential violations of the country’s strict labor laws. They responded to the judge’s rejection by announcing plans for a civil lawsuit against the government. Prosecutors said they initially sent the proposal to protect Brazilian jobs to Boeing and Embraer, but the companies had said they did not intend to give such a guarantee. Embraer had 16,000 employees in Brazil as of the end of 2016.

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The request for an injunction was filed against the Brazilian government because, while Embraer is a private company, the government holds a special stock that grants it veto power over major business decisions. In their lawsuit, the prosecutors said they plan to argue that U.S. President Donald Trump could force the venture to “produce only in the United States.” Trump has been implementing measures aimed at making imports and the offshoring of jobs more expensive. The labor prosecutors also said the Brazilian government had poured more than $25 billion into Embraer over the years, but that the company would only regain $3.8 billion from its sale to Boeing. The proposed deal with Boeing would not include Embraer’s defense and executive jets business, where the Brazilian government would maintain veto power. But analysts and government advocates have raised concerns about the profitability of those divisions in the absence of the commercial jets division, which has been the company’s cash cow.

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