Amid overall positive trade headlines, Nikkei came out with the news story that China is seeking $2.4 billion in retaliatory sanctions against the United States (US) for failing to comply with a World Trade Organization (WTO) ruling.
Key quotes
“The WTO’s Dispute Settlement Body (DSB) will review the case which dates back to the Obama-era on Oct. 28, a document published on Monday showed.”
“WTO appeals judges said in July the United States did not fully comply with a trade body ruling about tariffs it put on Chinese solar panels, wind towers, and steel cylinders. They said Beijing could impose retaliatory sanctions if Washington did not remove them.”
“Washington has challenged the validity of the WTO ruling and could dispute the $2.4 billion in retaliatory sanctions, sending the matter to arbitration.”
FX implications
While major market sentiment is looking for the US-China trade deal, the news fails to defy optimists. However, the US reaction to the news and any more developments on this front could spoil the trade positive sentiment, which in turn can drag Antipodeans down.
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