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TRADE WARS
Belgian leaders near consensus for EU-Canada trade deal
By Marine LAOUCHEZ, Lachlan CARMICHAEL
Brussels (AFP) Oct 26, 2016


US probes China-tied aluminum firms: report
Washington (AFP) Oct 26, 2016 - US authorities are investigating whether companies tied to a Chinese billionaire evaded punitive tariffs on aluminum imports, according to a media report Wednesday.

Agents from the Department of Homeland Security recently questioned US companies and former employees tied to Liu Zhongtian, founder of China Zhongwang Holdings Ltd, The Wall Street Journal reported, citing knowledgeable sources.

One suspicion is that aluminum from China Zhongwang is being imported into the United States in the form of pallets -- which carry a low tariff -- with the intention of melting them back down once in the country, according to the Journal.

Zhongwang aluminum products made in China are subject to import tariffs of as much as 374 percent because the US has found they are heavily subsidized.

The investigation is examining possible criminal and civil violations that may include smuggling, conspiracy and wire fraud.

China Zhongwang, which describes itself as Asia's largest producer of extruded aluminum products, has denied wrongdoing, according to The Journal.

A Homeland Security spokesperson told AFP the agency cannot confirm the existence of any investigation into the matter.

Companies under scrutiny by Homeland Security include New Jersey-based Aluminum Shapes and Peng Cheng Aluminum Enterprise Inc in Walnut, California, according to the newspaper report.

The Commerce Department said in March it was investigating allegations China Zhongwang was transshipping aluminum to the United States via Mexico, also in a bid to avoid US import duties.

The government determined in 2010 that China Zhongwang benefited from illegal subsidies and was dumping its products on the US market.

The Commerce Department also is investigating whether Aluminum Shapes LLC imported aluminum pallets -- which are subject to far lower tariffs -- to be melted down for raw material, according to The Journal report. Aluminum Shapes has denied wrongdoing.

The latest investigation comes as US industry has campaigned against perceived trade violations by China as the global aluminum industry struggles with massive overcapacity.

Belgium's political leaders edged closer to resolving differences that have blocked a landmark EU-Canada free trade deal but time was running short for holding a planned signing summit on Thursday.

The stakes are high amid warnings that the EU's international standing, already battered by Britain's shock June Brexit vote, will suffer further if seven years of trade negotiations go to waste because of internal Belgian politics.

"We have been able to reach agreement on the documents with all the head ministers" who represent Belgium's linguistic communities, Belgian Foreign Minister Didier Reynders said as the latest of several rounds of talks on Wednesday resumed at 1900 GMT.

But further consultations are still needed before the documents are sent for checking to the ambassadors of all 28 EU member states, Reynders said as he arrived at the official residence of Prime Minister Charles Michel.

EU leaders have voiced optimism that Belgium's federal government can win over recalcitrant French-speaking communities in eleventh-hour talks, with Canadian Prime Minister Justin Trudeau still due to fly in to sign the deal on Thursday.

But Rudy Demotte, president of the southern French-speaking Wallonia's parliament, raised a note of caution by saying "we have technical discussions which are complicated."

He also said it would be "difficult" to maintain the plans for a summit in Brussels on Thursday to sign the Comprehensive Economic Trade Agreement (CETA).

When and if the documents are sent for review by the EU ambassadors, they will have to be sent back to the Wallon parliament and other Belgian government institutions.

In Ottawa, a Trudeau spokesman said "if we are presented with an agreement, we will sign it," but added the Canadian premier will not travel "if there is no agreement."

- 'Ready to go' -

He added: "We are still ready to go to Brussels tomorrow."

In the last few days, a range of intensive talks involving Belgian leaders as well as EU officials have been held in a bid to break the deadlock.

"I trust that an agreement will be reached in the course of today with Belgium, Wallonia and other parts of the country," European Commission chief Jean-Claude Juncker earlier told the European Parliament in Strasbourg, France.

But he said he did not know if the deal would be reached in time to go ahead with the summit.

Donald Tusk, the European Council president who would host the summit, told the European Parliament he hoped the agreement would be finalised soon and that the summit is "still possible."

He also warned that the EU's international reputation would suffer if the deal falls through with Canada, "the most European country outside Europe and a close friend and ally."

Hinging on its success are other trade negotiations, including even more controversial ones with the United States.

The CETA pact would link the EU's single market of 500 million people -- the world's biggest -- with the 10th largest global economy in what would be the most ambitious tie-up of its kind so far.

Leaders of Wallonia, a 3.5 million-strong region south of Brussels, want guarantees that CETA will not harm local farming and other interests.

Critics especially oppose terms of the deal intended to protect international investors which they say could allow them to force governments to change laws against the wishes of the people.


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Previous Report
TRADE WARS
Belgium's Wallonia misses EU 'ultimatum' on Canada trade pact
Brussels (AFP) Oct 24, 2016
A Brussels summit to seal a landmark EU-Canada trade deal is "still possible" this week, European Council President Donald Tusk said Monday, even though Belgium cannot give its approval. Canadian Prime Minister Justin Trudeau earlier appeared unlikely to attend Thursday's summit after the Belgian government said regional leaders were preventing it from supporting the pact, effectively blocki ... read more


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