In Geopolitics Today: Friday, December 9th
World Trade Organization Rules Against US Steel and Aluminium Tariffs, India’s Fuel Consumption Rises By 10% In November, and other stories.
China and Egypt to Promote Mutual Investments
Egypt and China have established an Entrepreneurs Association in a bid to encourage Chinese investments in Egypt. The organization created by both governments will foster economic relations between Cairo and Beijing.
The association will enable dialogue to take place between the two business communities in an effort to “maximize investments” by Chinese businesses. Egypt has been the recipient of some of the most significant Chinese investments made in the Middle East, amounting to roughly $28.5 billion between 2018 to 2019. The Suez Canal Economic Zone is expected to play an important role in promoting China's Belt and Road Initiative, particularly through the China-Egypt TEDA Suez Economic and Trade Cooperation Zone.
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Italy, Japan and the UK to Co-develop Sixth-generation Fighter Aircraft
The United Kingdom has announced it will work to develop next-generation fighter jets in close collaboration with Italy and Japan. London has framed the partnership as crucial to “outpacing and out-manoeuvring” their potential adversaries.
Few details are available beyond the released expectation to field the fighter aircraft by 2035. The ambition for all three states involved is for the planes developed under the global combat air programme to be enhanced by uncrewed aircraft, advanced sensors and cutting-edge weapons. The UK’s Prime Minister is expected to launch the first major phase of development during a visit to RAF Coningsby, in Lincolnshire.
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World Trade Organization Rules Against US Steel and Aluminium Tariffs
A World Trade Organization panel has ruled against the steel and aluminium tariffs introduced by the United States in 2018. The tariffs were justified under national security concerns, citing a domestic law allowing the previous US administration to implement security-related exemptions in the General Agreement on Tariffs and Trade (GATT).
The decision will have no immediate impact on the US, as Washington will appeal the ruling. Nevertheless, the ruling sets an important precedent in determining that the justification employed by the US was not consistent with the GATT. The decision will put pressure on the US to relax the restrictions, though Washington will not be obligated to do so until the WTO's Appellate Body rules on the case. However, the Appellate Body cannot make rulings because it has been functionally paralyzed ever since the US blocked new appointments in 2018.
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Ukraine and the UAE Agree to Hold Talks on Trade Agreement
The United Arab Emirates (UAE) has agreed to begin bilateral trade talks with Ukraine. The UAE is seeking to balance its relationship with both Russia and the United States, leading to some limited cooperation Kiev.
The UAE’s Minister of State for Foreign Trade and Ukraine’s Economy Minister signed a joint statement on negotiations towards a Comprehensive Economic Partnership Agreement (CEPA), expected to be a thorough trade agreement between the two if talks prove successful. While increased cooperation will be welcomed by Washington, the UAE continues to play a balancing act between the US and Russia.
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India’s Fuel Consumption Rises By 10% In November
The consumption of fuel in India throughout the month of November has risen by 2.4% since October, and has risen 10.2% year-on-year, according to the data from the Indian oil ministry's Petroleum Planning and Analysis Cell.
A rise in demand is driving an increase in crude oil imports to India. New Delhi’s crude purchases have been rising steadily in the past few months, especially imports of deeply discounted crude oil from Russia. India has imported a record high volume of Russian crude in November, with Russia overtaking Iraq as India’s largest crude supplier in November.