AI regulation necessary to avoid trade frictions and other international trade stories to know this month

Generative artificial intelligence (AI) has great potential to transform global trade, enhance productivity, streamline supply chains, and create new opportunities for cross-border transactions. But to realize the opportunities it presents we need global governance to help avoid fragmented regulations and increased trade barriers, a new report from the World Economic Forum finds.

The World Trade Organization (WTO) is one of the few global platforms with the capability of facilitating inter-governmental conversations on AI, and helping harmonize its regulation, according to 'ChatWTO: An Analysis of Generative Artificial Intelligence and International Trade'.

It points out that the rapid adoption of AI principles into national regulations has created fragmented and divergent requirements. These could increase cross-border trade frictions and undermine governmental objectives, creating barriers to the use of the technology.

At the start of October, container ships queued outside 36 major US ports as the biggest dockworker strike in nearly half a century prevented vessels from unloading.

The International Longshoremen's Association (ILA) workers union launched the strike of 45,000 port workers on Tuesday 1 October.

Analysts from JP Morgan said the strike could cost the US economy around $5 billion per day if it continued for a prolonged period.

A settlement was reached after three days and US East Coast and Gulf Coast ports reopened on 4 October, but it could take two to three weeks before services are running as normal, a pricing platform analyst told Reuters.

The timing of the agreement proved essential for many southeastern US states which needed supplies after Hurricane Helene caused widespread damage.

The European Union (EU) has voted to give the green light to impose new tariffs on Chinese electric vehicles (EVs), despite strong opposition from countries including Germany. The proposals would see tariffs of up to 45% on imports of EVs from China, and will take effect from next month. EU car automakers have largely opposed tariffs, primarily over possible retaliation from Beijing. Germany, for example, relies on China for nearly a third of its auto sales.

Meanwhile, China has asked the WTO to rule on Canada's imposition of tariffs on imports of its EVs, as well as steel and aluminium products.

Escalating tensions in the Middle East are raising concerns that oil supplies will be impacted. The oil trade is expected to continue to be jittery and volatile as the market reacts to the uncertainty and risk caused by the conflict. Oil prices climbed 3% on 1 October following missile launches from Iran towards Israel, raising concerns that key oil producers in the region, including Iran and Saudi Arabia, could be affected.

The US has set preliminary countervailing duties on solar imports from Southeast Asia. The US Commerce Department has calculated new subsidy rates for imports of solar cells from Vietnam, Cambodia, Malaysia and Thailand. This follows a trade case alleging that Chinese companies with manufacturing plants in Southeast Asia were flooding the US market with discounted products while receiving unfair subsidies.

Belgium is urging the EU to ban Russian liquified natural gas (LNG), as imports of the energy source rise. Tinne Van der Straeten, Belgium’s energy minister, told the Financial Times (FT) that unless a bloc-wide approach to sanctions was imposed it would be difficult for companies to break long-term contracts. LNG contracts run for a decade or more, meaning many currently in play pre-date Russia's invasion of Ukraine.

The US Commerce Department is proposing to ban Chinese software and hardware for vehicles with built-in internet connections. This would in effect ban all Chinese vehicles from the US market, the FT reports. The proposal has come about in response to concerns from the Biden administration about Chinese companies collecting data on American drivers and infrastructure, as well as the ability of adversaries to manipulate connected vehicles.

The WTO has asked the EU to "relook" at a ban on imports from deforested areas that has angered countries across Latin America and Southeast Asia, in particular. The new rules, which are due to come into force at the end of the year, would affect exports of coffee, wood and soya, among other goods, from a range of countries.

Seventy-five percent of textiles end up in landfills. Can trade facilitation and the circular economy be the solution? This article explores how the lack of standardized classification and reporting systems across countries is creating challenges for textile recycling and how the textile industry can learn from e-waste regulations.

Global crises and geopolitical tensions threaten to undermine fragile progress on the SDGs, writes Børge Brende, World Economic Forum President. But private-sector "coopetition" highlights how governments can take action to deliver on promises.

Electronics waste is the fastest-growing waste category globally, yet problems persist with collection and recycling. But when e-waste is recycled properly it offers an energy-efficient source of raw materials critical to the energy transition. This article explores how trade and investment can play a constructive role in accelerating circular electronics.

A new Forum white paper examines how trade and domestic policy interventions can tackle the challenges faced by women and their businesses. Highlighting the importance of gender-disaggregated data for identifying issues and assessing government programmes, Strengthening the Gender Dimension in the Trade Policy Review Mechanism explores the role of the WTO’s Trade Policy Review Mechanism, offering recommendations for improvement. Discover how targeted policies can promote equality and support women’s empowerment in global trade.