The week in trade ended with the news that incumbent WTO director general Dr. Ngozi Okonjo-Iweala will serve a second term. The organisation announced today that its General Council unanimously agreed her reappointment. Her second four-year term will begin 1 September 2025.
Elsewhere, there were also more tariff threats from Mar-a-Lago, a record donation to a World Trade Organization (WTO) fund supporting women traders and a new sustainability-focused trade agreement from four eco-conscious nations.
The big picture: This week, US president-elect Donald Trump vowed to introduce tariffs of 25% on goods from Canada and Mexico, and an additional 10% on Chinese goods. This was justified by claims that all three are responsible for illegal drug trafficking and migration into the US.
Mexican president Claudia Sheinbaum and Canadian counterpart Justin Trudeau were quick to respond, with Sheinbaum in particular hitting back by questioning the rationale of imposing tariffs which would “cause inflation and job losses in Mexico and the US”.
In both countries, regional and local leaders were more vociferous, with several Canadian regional leaders urging retaliatory measures if the tariffs are introduced come January.
Good week/bad week: The WTO welcomed a pledge of US$16.6m from FIFA for its Women Exporters in the Digital Economy (WEIDE) fund.
The fund aims to “help women tap into opportunities in international trade and the digital economy through grants and technical assistance”.
WTO director general Ngozi Okonjo-Iweala said that the pledge “builds on important lines of collaboration” between the organisation and FIFA, adding that:
“This groundbreaking collaboration will help scale up capacity for women entrepreneurs seeking to use digital tools and platforms to access new opportunities and global value chains.”
Not such good news for manufacturers requiring tungsten – a metal used in the production of weapons and semiconductors – as CNBC reports that it could be the next critical mineral that China places export restrictions on.
The report adds that markets haven’t moved much in response to the plans, with experts highlighting that a resurgence in mining in companies allied with the US, including in Spain, Australia and South Korea, could absorb any additional demands.
With projects requiring years to start consistently providing metal ore, the situation means uncertainty in the short term, especially as demand for tungsten is predicted to rise over the next year.
How’s stat? 19.5% - the amount that Italian food and drink exports increased in the first half of this year, compared to the same period in 2023.
In addition to tariffs on North American trading partners and China, Trump’s threats to impose up to 20% in tariffs on the EU when he re-enters office in 2025 have spooked Italian exporters. They’ve have been racing to send their goods to the US, according to the FT.
The week in customs: There were tips on how to navigate customs changes on both sides of the Channel, as the rollout of the UK’s Border Target Operating Model (BTOM) continues next year and EU businesses migrate to the Excise Movement and Control System (EMCS). They came from our member, Customs4trade’s Ludovic Demeyere.
Quote of the week: “How do you make America great again if global demand is falling?”
Christine Lagarde, head of the European Central Bank, cautioning Trump against his planned tariff hike, while also suggesting the EU buy more American goods to placate the president-elect.
What else we covered this week: As Irish voters are heading to the polls for the country’s general election, we provided a Trade Insights feature on what the results could mean for the Windsor Framework.
We covered Ursula von der Leyen’s success in seeing all her European Commission picks accepted by the EU’s parliament – even if by a narrower margin than in her previous term.
In other EU news, the bloc is planning a fresh raft of sanctions against Chinese firms suspected of supporting Russia’s war in Ukraine. Individuals and firms linked to the export of drone parts and technology have been targeted.
In addition, there have also been successful trade missions to Guyana and Barbados by the Department of Business and Trade this week. To support your company to engage with new export markets, the Chartered Institute offers region-specific Doing Business Handbooks, including for Guyana and Barbados and the East Caribbean.
True facts: What connects Costa Rica, Iceland, New Zealand and Switzerland? As of this month, a climate agreement which addresses climate change, sustainability and trade.
The new agreement removes tariffs on 316 environmental goods, including solar panels, wind and hydraulic turbines, electric vehicles, wool fibre, recycled paper and wood products, and highlights 110 “environmental and environmentally related services”. It also includes provisions for an eco-labelling programme and a framework to eliminate fossil fuel subsidies.
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