International News 23 January 2025
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EU Sues China at WTO, What's the Problem?
The European Commission has formally registered a complaint with the World Trade Organization (WTO) regarding China's practice of implementing global royalty tariffs for EU-standard patents without the authorization of the patent holders. The Commission asserts that this practice exerts pressure on European high-tech companies to reduce their global tariffs, resulting in unfair access for Chinese manufacturers to European technologies. The complaint specifically concerns standard essential patents (SEPs), which protect essential technologies for goods that meet certain standards, such as 5G for mobile phones. This issue has affected prominent European SEP holders such as Nokia and Ericsson. In response, China's Ministry of Commerce has expressed regret over the EU's decision and stated that China will handle the matter according to WTO rules while safeguarding its rights and interests. The European Commission has formally requested consultations with China as a first step in resolving the dispute.
https://internasional.kontan.co.id/news/uni-eropa-gugat-tiongkok-ke-wto-apa-masalahnya
World oil prices fall as Trump plans to increase US oil output
Following the declaration of a national energy emergency by US President Donald Trump on his first day in office, there was a decline in oil prices. This was due to concerns about increased US oil production in a market already facing oversupply. Brent crude prices fell by 1.1% to $79.29 per barrel, while West Texas Intermediate (WTI) crude oil for February delivery dropped by 2.6% to $75.89. The WTI contract for March, which is more actively traded, also fell by 2% to $75.83. US oil production is currently at record levels, while the OPEC+ producer group is maintaining production at 5.86 million barrels per day. The primary concern at present is the absence of demand, with sluggish economic activity and the ongoing energy transition reducing demand in major consuming countries such as the US and China.
US Dollar Strengthens as Trump Proposes Tariffs on Canada and Mexico
The US dollar demonstrated signs of recovery on Tuesday, following its most significant decline in 14 months.US President Donald Trump's announcement regarding the potential imposition of tariffs on Canada and Mexico by 1st February contradicts predictions of a phased approach. Trump's proposal includes the possibility of tariffs amounting to around 25% on imports from Canada and Mexico, with the aim of addressing concerns related to illegal immigration and the entry of fentanyl into the US. However, he also stated that universal tariffs are not currently under consideration. The US dollar had declined significantly on Monday after Trump's inauguration day, during which no specific tariff plan was revealed.The uncertainty surrounding tariffs and the crowded long-term dollar positions contributed to the fluctuations in the value of the US dollar.The dollar index, which measures the currency against a basket of currencies, rose 0.32% to 108.33 on Tuesday.