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GENEVA — China accused the European Union on Tuesday of risking a return to the "law of the jungle", telling a dispute hearing at the World Trade Organisation (WTO) that it was astonished by what it called the EU's disregard for the WTO's rulebook. 

China's made its allegation during a dispute which some trade lawyers see as the most divisive piece of litigation in the WTO's 28-year-history, pitting China's claim to be treated as a market economy versus EU and US claims that it does not deserve such treatment since it does not trade fairly.

China told the confidential dispute hearing that it placed extraordinary emphasis on the case, which was of critical importance — legally, economically and politically.

Its case against the EU, and a parallel dispute against the United States, is based on a promise enshrined in China's 2001 WTO membership agreement: that after 15 years Beijing would be granted "market economy" status.

"The EU's effort to rescind the promises it made, and the legal obligations it undertook, makes one wonder, is it a real role model for the rule of law, or does it disavow its obligations when politically expedient?," China's representative asked. 

"It also makes one wonder, is the WTO really a rules-based organisation, or just a club where powerful traditional members can bend the rules?"

The dispute centres on the use of anti-dumping tariffs, which are used to punish foreign goods being sold at unfairly cheap prices.

China said it was astonished by the blunt manner in which the EU was trying to revive their discriminatory use, considering that the agreement was "recorded in black and white".

"Besides enjoying no basis whatsoever in the treaty, the EU's argument would open a Pandora's Box," China said.

"The multilateral anti-dumping disciplines that have been gradually formed and strengthened over many decades will be shattered in one single dispute. The world trading environment will return to the law of the jungle."

Although the EU might single out China for using regulatory action that "distorts" its market, all governments tried to influence economic activity, China's statement said.

"What, after all, is the purpose and function of the EU's own common agricultural policy, if not to influence — some would say distort — markets? Similarly, the US government provides substantial subsidies to the production of corn, influencing the production of downstream food products, including poultry and beef, is this not also government 'distortion'?"

The EU did not immediately make available its arguments in the hearing. 

SYDNEY — Asian shares rose to near two-month highs on Monday on hopes of a thaw in US-China trade tensions as US President Donald Trump pledged to help ZTE Corp. "get back into business, fast" after a US ban crippled the Chinese technology company.

Spreadbetters signaled a flat start for European shares with FTSE futures off 0.07 per cent, while E-Minis for the S&P 500 rose 0.3 per cent. 

Trump's comments on Sunday came ahead of a second round of trade talks between US and Chinese officials this week to resolve an escalating trade dispute. China had said last week its stance in the negotiations would not change.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, while Japan's Nikkei tacked on 0.5 per cent.

Chinese shares came off the day's highs but were still upbeat after Trump's comments on ZTE, which JPMorgan analysts said was "a significant positive".

Shanghai's SSE Composite rose 0.2 per cent while China's blue-chip was last up 0.8 per cent. Hong Kong's Hang Seng index climbed more than 1 per cent. 

"The fact Trump is now...working to find a resolution for ZTE marks the latest sign of thawing in Beijing-Washington relations," JPMorgan said.

"Trump also needs China to remain on side ahead of his meeting with North Korea's Kim and this also suggests that until the 12 June meeting the signalling from the US on trade will be more positive."

The United States has said it will lift sanctions on Pyongyang if North Korea agrees to completely dismantle its nuclear weapons programme.

Elsewhere in Asia, the Malaysian ringgit slipped 1 per cent to a four-month trough against the dollar in the first onshore trade since a shock election upset last week. It has come off lows since then, while Malaysian stocks sank as much as 2.7 per cent at one point but have bounced back to be last up 0.7 per cent.

Veteran Mahathir Mohamad came out of political retirement to lead the opposition Pakatan Harapan (Alliance of Hope) to a stunning victory against Prime Minister Najib Razak, a former protege he had accused of corruption. 

Some investors were concerned that populist promises such as repealing an unpopular goods and services tax and restoring a petrol subsidy could undermine the country's finances. 

But some analysts on Monday said Mahathir's proposals could be positive for the economy.

"The repeal of GST, while only marginally negative for the fiscal deficit, will be a boon for consumers, who have been upset that they bear the burden of poor fiscal management and came out to vote against the establishment," said Trinh Nguyen, senior economist at Natixis.

Oil and Iran 

While tensions in the Korean peninsula have eased, US plans to reintroduce sanctions against Iran have stoked anxiety in the Middle East.

Iran pumps about 4 per cent of the world's oil, and the latest development has sent oil prices near multi-year highs.

Citi analyst Mark Schofield said rising oil prices risk causing “stagflation”, which could create a particularly "hostile environment" for risk assets. 

The United States threatened on Sunday to impose sanctions on European companies that do business with Iran, as the remaining participants in the Iran nuclear accord stiffened their resolve to keep that agreement operational.

In currencies, the dollar dipped was barely changed at 92.506 against a basket of major currencies after three straight days of losses.

Against the Japanese yen, it ticked up to 109.46 per dollar, remaining largely in a holding pattern since late last month.

The euro inched 0.1 per cent up to $1.1958 following two consecutive sessions of gains as Italy's anti-establishment parties looked likely to form the next government.

Last week, the Bank of England held rates steady and New Zealand's central bank said the official cash rate will remain at historic lows of 1.75 per cent for "some time".

That leaves the Fed as the only major central bank in the world committed to rate increases although recent data showing moderate inflation reading has cast doubt over the pace of any hikes. 

Spot gold was up 0.2 per cent at $1,320.06 an ounce, after eking out a small weekly gain last week.

ABU DHABI — Abu Dhabi National Oil Co. (ADNOC) on Sunday announced a $45-billion (38-billion-euro) investment to modify an existing facility into one of the world's largest integrated refining and petrochemicals plants.

The project aims to boost ADNOC's refining capacity by 65 per cent to 1.5 million barrels per day (bpd) by 2025, the state-owned firm's CEO Sultan Al Jaber told a downstream investment forum.

The work will upgrade the refining and petrochemicals plant at Ruwais in partnership with international energy firms, he said. 

ADNOC also plans to treble petrochemicals output at Ruwais from the current 4.5 million tonnes per year to 14.5 million tonnes per year, he said.

Abu Dhabi, one of seven states in the United Arab Emirates, holds more than 90 per cent of the federation's 98 billion barrels of crude oil reserves.

In November, Abu Dhabi announced plans to invest $109 billion (81 billion euros) in the energy sector over the next five years.

The UAE, OPEC's fourth largest producer, aims to boost crude oil production capacity from 3.2 million bpd at present to 3.5 million bpd at the end of the year.

Over the past few months, ADNOC has awarded concession rights at offshore sites to several international oil companies to boost its long-term production capacity.

It also renewed and extended concessions at onshore oilfields for major companies including Exxonmobil and Total.

Last month, ADNOC invited bids for exploration contracts for six major blocks with untapped oil and gas reserves.

ADNOC said the blocks are estimated to hold billions of barrels of oil and trillions of cubic metres of natural gas.

WASHINGTON — Senior American, Canadian and Mexican officials ended on Friday a week of talks without a deal to modernise the North American Free Trade Agreement (NAFTA). Instead, they agreed to resume negotiations soon, ahead of a deadline next week issued by US House of Representatives Speaker Paul Ryan.

The failure to secure a quick deal underscores uncertainty over the agreement, which US President Donald Trump on Friday said “has been a horrible, horrible disaster for this country”.

Trump, who blames the 1994 pact for US manufacturing job losses to lower-cost Mexico, often threatens to walk away unless the other two member countries agree to major changes.

After meeting for barely half an hour on Friday, the top Mexican and Canadian politicians involved in the talks to update the agreement made it clear that big differences remained.

Canadian Foreign Minister Chrystia Freeland said officials would continue working in Washington while ministers returned home for consultations.

“We plan to meet again as needed, which I think will be soon... The negotiation will take as long as it takes to get a good deal,” she told reporters after the meeting.

Pressure to reach a deal increased this week after Speaker Ryan said he needed to be notified of a new NAFTA by May 17 to give the current Congress a chance of passing it.

US Trade Representative Robert Lighthizer has said he wants a deal in place soon to avoid potential political problems stemming from Mexico’s July 1 presidential vote and US midterm congressional elections in November.

In a statement, Lighthizer said the United States was ready to continue working with Mexico and Canada but made no mention of a deadline. 

Friday’s talks were the first involving all three of the top officials in the NAFTA negotiations —Freeland, Mexican Economy Minister Ildefonso Guajardo and Lighthizer — since the latest round started on Monday.

Mexico has not agreed to a US proposal to boost North American content for autos made in the NAFTA region, one of the main sticking points. Guajardo said his team tried hard during the week to bridge the gap.

“We’re not going to sacrifice the quality of an agreement because of pressure of time,” he said.

Financial markets are nervous about the damage a US withdrawal could inflict on the highly integrated North American economy. Canada’s central bank governor and other policymakers complain that uncertainty over the pact is hitting business investment.

Guajardo, who wants to reach an agreement on all the principal aspects of a modernised NAFTA before sealing a new deal, says plenty of other issues were outstanding.

Drafting new rules of origin governing what percentage of a car needs to be sourced from the NAFTA region to avoid tariffs has been at the center of the talks.

It forms a key plank of the Trump administration’s aim to boost jobs and investment in the United States.

Officials and industry sources say the three sides have been gradually narrowing their differences on autos.

However, several other major issues are still unresolved, including US demands for a sunset clause that would allow NAFTA to expire if it is not renegotiated every five years, and elimination of settlement panels for trade disputes.

LONDON — The Bank of England (BoE)  on Thursday left its key interest rate at 0.50 per cent as it slashed the growth forecast for the British economy less than one year before Brexit.

The decision met expectations following a raft of gloomy economic data pointing to slowing growth and weaker inflation, as Britain readies for its exit from the European Union in March 2019.

“For the majority of [BoE] members, an increase in bank rate was not required at this meeting,” read minutes from the meeting of the bank’s nine-strong monetary policy committee (MPC).

“All members agree that any future increases in bank rate are likely to be at a gradual pace and to a limited extent.”

Freezing weather 

The bank cut its forecast for growth in the British economy to 1.4 per cent this year from 1.8 per cent, after freezing weather at the start of the year impacted many sectors.

Nevertheless, BoE governor Mark Carney expressed optimism over the “resilient” economy.

The “underlying pace of growth remains more resilient than the headline data suggests”, Carney said in a press conference following the decision.

The BoE, meanwhile, kept its 2019 and 2020 growth projections broadly unchanged.

Economist Chris Williamson, at consultancy IHS Markit, said the fact that the bank retained its medium term outlook “leaves expectations alive for rates to rise later in the year”.

Only a few weeks ago, economists were predicting a hike in borrowing costs to 0.75 per cent this month but recent gloomy data changed the outlook.

Official figures have since shown that the economy grew at its slowest pace in more than five years in the first quarter of 2018.

“Weaker than expected GDP for the first quarter and falling inflation made it impossible for the MPC to justify a hike in interest rates,” said analyst Jacob Deppe at trading platform Infinox.

“To have hiked bank rate would have contradicted all economic logic.”

Gross domestic product expanded by just 0.1 per cent in the three months to March. That was the weakest growth rate since 2012.

 ‘Appropriate’ 

The bank added on Thursday that policymakers still believed that a rate hike would be “appropriate” at some point to bring inflation under control.

Recent data also showed UK inflation unexpectedly slowed in March to 2.5 per cent — the lowest level in a year.

However, it remains stubbornly above the BoE’s government-set target level of 2 per cent.

“An ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to its target at a conventional horizon,” the minutes added.

UK inflation had jumped last year after Britain voted to leave the European Union in 2016.

The Brexit referendum pushed down the pound, in turn hiking the cost of imported goods. But sterling has since recovered somewhat. 

The BoE added on Thursday that sluggish economic activity was enough to convince the majority of MPC members to maintain the status quo.

NEW YORK — Oil prices rose more than 2 per cent on Wednesday, climbing to near three-and–a-half-year high.

The rise came in the aftermath of US President Trump’s decision to abandon a nuclear deal with Iran and his announcing the "highest level" of sanctions against Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC).

Ignoring pleas by allies, Trump on Tuesday pulled out of a 2015 international deal with Iran, making investors nervous about rising risks of conflict in the Middle East and about oil supplies in a tight market.

The United States will likely reimpose sanctions against Iran after 180 days, unless some other agreement is reached.

Brent crude futures rose $2.02 to $76.87 a barrel, a 2.7 per cent gain, by 10:52am EST (14:52 GMT). The session high of $77.43 a barrel was the highest since November 2014.

US West Texas Intermediate crude futures rose 2.6 per cent, or $1.79 to $70.85 a barrel.

Prices extended gains after US Energy Information Administration (EIA) data showed that domestic crude inventories fell 2.2 million barrels in the latest week, far exceeding forecasts for a decrease of 719,000 barrels.

The EIA report helped lift US gasoline futures to $2.1674 a gallon, the highest since Hurricane Harvey sent prices surging in August. US heating oil futures surged to $2.2258 a gallon, the highest since February 2015. 

Crude stocks at the Cushing, Oklahoma, delivery hub rose 1.4 million barrels, EIA said.

Iran reemerged as a major oil exporter in 2016 after international sanctions against it were lifted in return for curbs on its nuclear programme. The country, the third-biggest producer of crude within OPEC, exported about 2.6 million barrels per day (bpd) in April.

Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new US sanctions range from 200,000bpd to 1 million bpd.

Investment bank Goldman Sachs said in a note that Trump's announcement brought upside risks to its forecast that Brent crude will hit $82.50 a barrel by the summer.

Several refiners in Asia said they were seeking alternatives to Iranian supplies.

A number of countries have already cut reliance on Iranian oil, as well as other "traditional" sources of supply, due to a surge in cheaper US crude exports.

Volumes jumped for all key crude oil futures contracts as investors took new positions and refiners hedged to protect themselves from higher feedstock prices. 

Saudi Arabia said it would work with other producers to lessen the impact of any shortage in oil supplies. The country has been leading efforts since 2017 to withhold production to prop up prices. 

Kuwaiti Oil Minister Bakhit Al Rashidi said his country will work with OPEC and non-OPEC oil producers to limit impact of any possible shortage in supplies, state news agency KUNA reported.

BEIJING — China's surplus with the United States widened in April, underlining an imbalance between the economic titans as they struggle to reach an agreement on averting a potentially damaging trade war.

The figures will likely reinforce Washington's determination after high-level talks in Beijing last week ended with both sides admitting there were big differences to overcome, with threats of tariffs on billions of dollars of goods casting a shadow.

The record imbalance is at the heart of US President Donald Trump's anger at what he describes as Beijing's unfair trade practices that are hurting American companies and destroying jobs.

Customs data showed the surplus grew 4.2 per cent on-year to $22.2 billion last month, with exports rising by a tenth and imports up more than 20 per cent.

Compared with March, the surplus was up 43.9 per cent, though analysts say seasonal factors such as Chinese New Year had dampened exports for the month.

Attention now turns to a visit next week by a delegation led by Chinese Vice Premier Liu He — considered President Xi Jinping's right-hand man on economic issues — hoping to iron out the differences.

However, there are concerns about the chances of success.

"We don't expect all core differences in the US-China trade relationship to be resolved," Wang Tao, chief China economist in Hong Kong for UBS, wrote in a recent report.

"Lingering trade tension and uncertainty will likely negatively affect China's export orders and related business investment," he said, according to Bloomberg News.

China ranks 110th, or "mostly unfree", on a global ranking of economic freedom put out by the conservative American think tank Heritage Foundation.

The two countries have been engaging in high-stakes negotiations to head off the threatened tariffs — Washington has targeted $150 billion in Chinese imports while Beijing put $50 billion of US goods on the firing line.

China's trade with the wider world also continued to improve, Tuesday's figures showed, after it posted a rare deficit in March.

Exports surged 12.9 per cent on-year, while imports rose 21.5 per cent — both figures beating expectations.

"The data suggest that foreign demand for Chinese goods has started to soften, with the prospect of possible US tariffs weighing on the outlook," said Julian Evans-Pritchard, China Economist at Capital Economics, in a note.

The strong import figures point to growing demand within China, a boon for the country's transition to consumption-fuelled growth from a decades-long dependence on exports and investment, analysts say.

"While softer foreign demand is being largely offset by domestic strength for now, the headwinds to growth from slower credit creation look set to increase," said Evans-Pritchard. 

AMMAN — According to figures released by Airport International Group, Queen Alia International Airport (QAIA) welcomed 1,814,157 passengers during Q1 of 2018, at an increase of 8.5 per cent in year-to-date passenger numbers as compared to the same period last year.

QAIA also witnessed 16,609 aircraft movements and handled 24,690 tonnes of cargo throughout the first quarter, marking a 1.8 per cent decrease and 8.8 per cent increase, respectively.

In March 2018, the airport registered a total of 646,579 passengers, which indicates a substantial 13.3 per cent rise from March 2017 and the third monthly passenger record to be broken, according to a statement of the Airport International Group. 

AMMAN — Upon an official visit by the Belgian and Luxembourg Trade Mission, the Belgian embassy on Tuesday awarded the Order of the Crown from King Philippe of Belgium to two Jordanian business owners.

These were Shukri Salfiti, CEO of Baker’s Choice, and Shermeen Dajani, founder and CEO of PanMed Energy. This was in recognition of their distinguished efforts in generating business between Jordan and Belgium, according to an embassy statement.

Belgian Ambassador Hendrik Van de Velde hosted a reception on Tuesday in honour of the two Jordanian business owners. “This prestigious decoration is a token of appreciation to foreign nationals by His Majesty King Phillipe of Belgium,” the ambassador said in a speech welcoming the guests.

The event was also intended to further connect companies from Jordan with counterparts in Belgium and Luxembourg.

Minister of Industry, Trade and Supply Yarub Qudah, in addition to other officials and business representatives from Jordan, Belgium and Luxembourg were present at the event. In 2017, Belgium was Jordan’s first and largest export market in Europe, according to the statement. 

LONDON/TOKYO — Takeda Pharmaceutical agreed to buy London-listed Shire for £45.3 billion ($61.50 billion) on Tuesday, marking the biggest deal yet in a wave of transactions sweeping the drugs industry.

The acquisition — assuming it wins the backing of shareholders — will be the largest overseas purchase by a Japanese company and propel Takeda, led by Frenchman Christophe Weber, into the top ten rankings of global drug makers. 

The tie-up crowns a hectic few months of M&A activity as big drug makers look to improve their pipelines by bringing in promising medicines developed by younger companies.

The enlarged group will be a Japanese national champion in pharmaceuticals and a leader in gastroenterology, neuroscience, oncology, rare diseases and blood-derived therapies, used for serious conditions such as haemophilia.

The agreement came on the last day for Takeda to make a firm bid. Shire had rejected four previous offers, due to price concerns and the fact that the Japanese company is proposing to pay for much of the acquisition in stock.

The final deal is approximately 46 per cent cash and 54 per cent stock, leaving Shire shareholders owning around half of the combined group. 

Shire investors will receive $30.33 in cash and either 0.839 new Takeda shares or 1.678 Takeda American depositary shares for each share, the companies said, valuing the offer at £48.17 a share based on the latest price and exchange rate.

That is a 60 per cent premium to the price before Takeda first declared its interest six weeks ago.

Shire’s shares were trading 4 per cent up on the previous close at just over £40 by 10:00 GMT, still well under the agreed price and indicating that some uncertainty remains.

“I think it is a good deal for Shire shareholders but not everybody may think that. However, the risk is that if shareholders vote this down then the shares are going to go down a lot,” said Polar Capital Fund Manager Dan Mahony, who owns both Shire and Takeda stock.

The deal must get the support of 75 per cent of Shire’s voting shareholders. While some of them do not want to hold Takeda paper, Weber told reporters he believed investors would back the transaction.

“Their board and our board is confident that both shareholders will see the benefit of the acquisition,” he said.

Jefferies analysts said they expected the shares to trade at a relatively wide discount to the offer, given investor unease over the large stock component and the fact that the deal is not expected to close until the first half of 2019. 

The deal also needs two-thirds approval from Takeda shareholders.