from Zero Hedge:
Just one month after we discussed ArcelorMittal’s ‘demand’ that Europe seek sanctions against China’s steel tariffs (following unfair ‘tit-for-tat-wine’ Chinese trade practices, after EU solar panel tariffs), Reuters reports that the EU is indeed to press the WTO to rule against Chinese duties on imported steel. While history never repeats, it merely rhymes, this episodic collapse in economies, markets, and trade is now showing signs of the same desperation as during the Great Depression as intervention, devaluation, and now protectionism are brought to bear to save the domestic economy at all costs. The EU joins Japan in this rapidly escalating trade war with Beijing as they believe “retaliation by the Chinese is now recognized,” something not allowed under WTO rules, “and so they have a good chance to win.” This will not help either trade relations with the world’s ‘growth’ engine or the credit-crunched nation’s massive glut of commodities (and commodity-backed credit lines).
Please follow SGT Report on Twitter & help share the message.