The trade tariff spat between China and the United States has been a “lose-lose” situation for both countries and the wider world and it is likely to deteriorate unless a deal is reached, UN economists said on Tuesday.
According to data from the first six months of the year, most of the cost of higher US tariffs on China has been passed down to US consumers and firms.
“US consumers are paying for the tariffs …in terms of higher prices,” said Alessandro Nicita, an economist at the UN trade agency, UNCTAD. “Not only final consumers like us, but importers of intermediate products – firms which import parts and components from China.”
Tariffs ‘cost China $35 billion in first half of 2019’
But the US-initiated measures – put in place in the middle of last year – have also hit the Asian giant, to the tune of $35 billion.
Its firms have seen exports of these targeted products fall by a quarter over the same period on average, with other competitors – notably Taiwan – picking up some of the slack ($4.2 billion in the first half of 2019).
Other trade winners from the measures include Mexico ($3.5 billion), the European Union ($2.7 billion) and Viet Nam ($2.6 billion) and the positive effects for them “have increased over time”, UNCTAD said.
Korea, Canada and India also benefited, with “substantial” gains ranging from $0.9 billion to $1.5 billion.
Other South East Asian countries scooped up the remainder of the tariff-induced casualties, UNCTAD said, while noting that African countries saw only “minimal” benefits.
Of the $35 billion Chinese export losses in the US market, about $21 billion (or 63 per cent) was diverted to these countries and others, while the remaining $14 billion was either lost or captured by US producers.
Chinese manufacturers bearing costs
The UN agency also noted that there is early evidence that Chinese exporters may have started to bear part of the costs of the tariffs by lowering export prices.
The hardest-hit Chinese manufacturing sector has been computers and other office machinery, and communications equipment, where exports from China have declined by $15 billion.
Other areas that have “dropped substantially” include chemicals, furniture, precision instruments and electrical machinery, the UNCTAD report shows.
It nonetheless underscored the resilience of Chinese firms, which maintained 75 per cent of their exports to the US, despite the “substantial” tariffs imposed.
Trade war is a global warning
“The results of the study serve as a global warning; a lose-lose trade war is not only harming the main contenders, it also compromises the stability of the global economy and future growth,” said UNCTAD’s director of international trade and commodities, Pamela Coke Hamilton. “We hope a potential trade agreement between the US and China can deescalate trade tensions.”
While the UNCTAD report does not consider the impact of Chinese tariffs on US imports, it suggests that the result is “most likely” to be the same: “higher prices for Chinese consumers, losses for US exporters and trade gains for other countries”.
Landmark decision gives legal teeth to protect environmental defenders
A 46-strong group of countries across the wider European region has agreed to establish a new legally binding mechanism that would protect environmental defenders, the UN Economic Commission for Europe (UNECE) said on Friday.
“I remain deeply concerned by the targeting of environmental activists”, said Secretary-General Antonio Guterres, welcoming the rapid response mechanism as “an important contribution to help advance my Call to Action for Human Rights”.
The agreement will delegate setting up the new mechanism to the United Nations, or another international body.
As the first ever internationally-agreed tool to safeguard environmental defenders, it marks an important step in upholding the universal right to a clean, healthy and sustainable environment – as recognized by the Human Rights Council earlier this month.
“Twenty years ago, the Aarhus Convention entered into force, bridging the gap between human and environmental rights.
Today, as the devastating effects of climate change continue to ravage the world, the Convention’s core purpose – of allowing people to protect their wellbeing and that of future generations – has never been more critical”, spelled out the UN chief.
A protective eye
The agreement to establish the mechanism was adopted on Thursday by the Meeting of the Parties to the Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters, known as the Aarhus Convention.
“This landmark decision is a clear signal to environmental defenders that they will not be left unprotected”, said UNECE chief Olga Algayerova.
“It demonstrates a new level of commitment to upholding the public’s rights under the Aarhus Convention, as well as Parties’ willingness to respond effectively to grave and real-time challenges seen in the Convention’s implementation on the ground”.
Whether it is groups protesting the construction of a dangerous dam or individuals speaking out against harmful agricultural practices in their local community, these activists are vital to environmental preservation across the globe, said the UNECE.
The Aarhus Convention ensures that those exercising their rights in conformity with the provisions of the Convention shall not be penalized, persecuted or harassed in any way for their involvement.
As such, the mechanism will establish a Special Rapporteur – or independent rights expert – who will quickly respond to alleged violations and take measures to protect those experiencing or under imminent threat of penalization, persecution, or harassment for seeking to exercise their rights under the Convention.
As time is of the essence to buttress the safety of environmental defenders, any member of the public, secretariat or Party to the Aarhus Convention, will be able to submit a confidential complaint to the Special Rapporteur, even before other legal remedies have been exhausted.
Although it is crucial for environmental defenders to confidently exercise their rights, cases have been reported in which instead, they face being fired, heavy fines, criminalization, detention, violence, and even death.
Moreover, incidents of harassment and violence against environmental defenders are far from uncommon.
A report to the Human Rights Council by Mary Lawlor, Special Rapporteur on the situation of human rights defenders, found that one-in-two human rights defenders who were killed in 2019 had been working with communities around issues of land, environment, impacts of business activities, poverty and rights of indigenous peoples, Afrodescendants and other minorities.
Since January 2017, among the Parties to the Aarhus Convention, incidents of persecution, penalization and harassment of environmental defenders have been reported in 16 countries.
In contrast to current existing initiatives, which mainly rely on applying political pressure through the media, the Aarhus Convention’s rapid response mechanism will be built on a binding legal framework, giving it much greater powers to act.
Plastic pollution on course to double by 2030
Plastic pollution in oceans and other bodies of water continues to grow sharply and could more than double by 2030, according to an assessment released on Thursday by the UN Environment Programme (UNEP).
The report highlights dire consequences for health, the economy, biodiversity and the climate. It also says a drastic reduction in unnecessary, avoidable and problematic plastic, is crucial to addressing the global pollution crisis overall.
To help reduce plastic waste at the needed scale, it proposes an accelerated transition from fossil fuels to renewable energies, the removal of subsidies and a shift towards more circular approaches towards reduction.
Titled From Pollution to Solution: a global assessment of marine litter and plastic pollution, the report shows that there is a growing threat, across all ecosystems, from source to sea.
Solutions to hand
But it also shows that there is the know-how to reverse the mounting crisis, provided the political will is there, and urgent action is taken.
The document is being released 10 days ahead of the start of the crucial UN Climate Conference, COP26, stressing that plastics are a climate problem as well.
For example, in 2015, greenhouse gas emissions from plastics were 1.7 gigatonnes of CO2 equivalent; by 2050, they’re projected to increase to approximately 6.5 gigatonnes. That number represents 15 per cent of the whole global carbon budget – the amount of greenhouse gas that can be emitted, while still keeping warming within the Paris Agreement goals.
Recycling not enough
Addressing solutions to the problem, the authors pour cold water on the chances of recycling our way out of the plastic pollution crisis.
They also warn against damaging alternatives, such as bio-based or biodegradable plastics, which currently pose a threat similar to conventional plastics.
The report looks at critical market failures, such as the low price of virgin fossil fuel feedstocks (any renewable biological material that can be used directly as a fuel) compared to recycled materials, disjointed efforts in informal and formal plastic waste management, and the lack of consensus on global solutions.
Instead, the assessment calls for the immediate reduction in plastic production and consumption, and encourages a transformation across the whole value chain.
It also asks for investments in far more robust and effective monitoring systems to identify the sources, scale and fate of plastic. Ultimately, a shift to circular approaches and more alternatives are necessary.
Making the case for change
For the Executive Director of UNEP, Inger Andersen, this assessment “provides the strongest scientific argument to date for the urgency to act, and for collective action to protect and restore our oceans, from source to sea.”
She said that a major concern is what happens with breakdown products, such as microplastics and chemical additives, which are known to be toxic and hazardous to human and wildlife health and ecosystems.
“The speed at which ocean plastic pollution is capturing public attention is encouraging. It is vital that we use this momentum to focus on the opportunities for a clean, healthy and resilient ocean”, Ms. Andersen argued.
Currently, plastic accounts for 85 per cent of all marine litter.
By 2040, it will nearly triple, adding 23-37 million metric tons of waste into the ocean per year. This means about 50kg of plastic per meter of coastline.
Because of this, all marine life, from plankton and shellfish; to birds, turtles and mammals; faces the grave risk of toxification, behavioral disorder, starvation and suffocation.
The human body is similarly vulnerable. Plastics are ingested through seafood, drinks and even common salt. They also penetrate the skin and are inhaled when suspended in the air.
In water sources, this type of pollution can cause hormonal changes, developmental disorders, reproductive abnormalities and even cancer.
According to the report, there are also significant consequences for the global economy.
Globally, when accounting for impacts on tourism, fisheries and aquaculture, together with the price of projects such as clean-ups, the costs were estimated to be six to 19 billion dollars per year, during 2018.
By 2040, there could be a $100 billion annual financial risk for businesses if governments require them to cover waste management costs. It can also lead to a rise in illegal domestic and international waste disposal.
The report will inform discussions at the UN Environment Assembly in 2022, where countries will come together to decide a way forward for more global cooperation.
No safe harbour: lifting the lid on a misunderstood trafficking crime
The crime of harbouring, in which victims of human trafficking are accommodated or forced to stay in a specific location, is not universally understood by courts around the world. A new UN study aims to address that issue, and improve protection for victims.
A journey of exploitation
Harbouring is one of five actions that constitute an ‘act’ in the internationally recognised definition of human trafficking, and is often used by prosecutors and judges for convictions of this crime.
The act can take place before and during exploitation, or between periods of abuse, encompassing a wide variety of settings, including brothels, private homes, factories, farms, or fishing vessels.
These locations can be dangerous, inhumane and unsanitary, and cn be controlled by criminals involved in the trafficking network.
In another case, victims who had been brought from Thailand to Australia were harboured during transit and at the place of exploitation: while being transported the victims were accommodated in hotels and accompanied by minders.
Once they were received by the offenders, the victims were either accommodated in the brothel where they were forced to work, or alternatively stayed at the offenders’ house, and were transported to and from the brothel each day.
Trafficking victims can also be subjected to harbouring once they arrive at the place of exploitation. In a case from the Dominican Republic, the offenders, a married couple, recruited a Chinese national to work in their business.
They promised to pay her and provide her with food. Instead, she was not paid, forced into domestic servitude and subjected to abuse.
A misunderstood concept
However, a new publication from the UN Office on Drugs and Crime (UNODC) has found that there is neither a uniform understanding of the act of harbouring, nor a consistent approach to this concept during court proceedings.
“Harbouring is one of the most frequent acts when committing human trafficking, but the concept is not interpreted in the same way throughout the world,” says Martin Hemmi, the UNODC expert who led the study.
“Some countries require the victims to be concealed or moved between locations for harbouring to be considered as an act of human trafficking. Others stipulate a minimum amount of time for the harbouring process,” adds Mr. Hemmi. “It is important to fully understand the concept to get justice for victims of this crime.”
The language barrier
Further findings show there are different meanings of the word ‘harbouring’ in the various language versions of the UN Trafficking in Persons Protocol, which is the world’s primary legal instrument to combat this crime.
In French and Arabic, the word used for harbouring has a positive connotation in the sense of hosting, while in English, Chinese and Russian, it can be perceived as having a negative meaning in the sense of hiding or concealing.
“Due to these discrepancies, the same conduct is considered human trafficking in one country but not necessarily in another,” says Mr. Hemmi.
“This has wide consequences. For the perpetrator, it can have an effect on the sentence. For the victim, it has an impact on rights and protection measures. For the courts, it can hamper requests for legal assistance and international cooperation.”
Wherever and however it occurs, harbouring with the intent of exploitation is an act of human trafficking and a violation of the victim’s rights and dignity, says Martin Hemmi.
“We hope that our new study will be used by investigators, prosecutors and judges to lead to a better understanding of this terrible crime and support measures to effectively protect victims and punish traffickers,” he concludes.
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