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tv   Counting the Cost 2018 Ep 10  Al Jazeera  March 11, 2018 6:32am-7:00am +03

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what i hope happens. now china's commerce minister has said that any trade war sparked by why help white house tariffs on steel and. imports would be disastrous for his country the u.s. and the rest of the world was speaking on the sidelines of the annual session of parliament the minister said china does not want a trade war and will lot in the shade one meanwhile ease your trade officials are calling for exemptions on u.s. and pull tariffs donald trump's former chief strategist's has addressed the far right national front party and its congress and the french city of little steve bannon praised party leader marine le pen for what he called her vision that puts nationalists versus globalists let them call you racist let's listen it was a let them call you son of many listeners it was a pleasing of let them call you nativist. wear it as a of honor just to remind now that you can always keep up to date
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with all the news on our website that is that al-jazeera dot com. counting the cost as the next. just. some journalists decided to sacrifice their integrity for out. there listening to this time on al-jazeera. this is counting the cost on al-jazeera your weekly look at the world of business and economics in what's been a big week for global trade we'll look at how the u.s. is up bending the rules of commerce and a free trade really is worth fighting for. and wayne hay reporting from vietnam where we look at how this country has in just a few decades emerged from economic isolation and how it stands to benefit from
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a new multilateral trade deal. plus a look at the futuristic self driving vehicles from this year's geneva motor show. now in the leader of the world's largest economy decides to take a more protectionist trade stance raising the price of some imports there's a domino effect even president trumps watered down tariffs on steel and our many i'm hurt america's allies and trading partners and economists are baffled on this week's show we'll look at why the united states under trump is going down this road we lost if china and intellectual property is trumps next target and if the world's largest economy start a trade war what does it all mean for you and me first off john hendren at the white house before the defiant donald trump fulfilled the promise that helped make him president the american still low milage astri has been ravaged by aggressive foreign trade practices. it's really an assault on
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a country. accusing china and other countries of dumping cheap steel on the u.s. market in an attack on american industry he said punitive tariffs on foreign steel and aluminum many of the countries that treat us the worst on trade and on military are our allies as they like to call the fact in fifteen days exempting canada and mexico as they renegotiate the north american free trade deal with the us and reserving the right to change the terms for other countries which changing things something the steelworkers that helped put trump in the white house over his promises of protectionism is going to bring steel back. had his own protectors that's been over a hundred million dollars and up let alone in kentucky in granite city illinois hundreds of workers laid off when the u.s. steel plant closed two years ago will be going back to work but on capitol hill the
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plan was criticized as the first shot in a certain trade war i'm disappointed in is what i should say because we just passed a tax bill and this kind of flies in the face of democratic senator dick durbin compared it to dropping a bomb on a fleet a fellow republican senator jeff flake vowed a bill to reverse the tariffs in canada the foreign minister faced questions about whether the deck was being stacked against her free trade negotiation team her answer was diplomatic we think a win win win outcome for all three countries is absolutely possible and not going to go shooting table we are absolutely defending and standing up for the national interest at the european union talk was much tougher thing and it's sort of we are now imposing tariffs on motorcycles harley davidson on blue jeans to the visor on bourbon we can also do stupid. newly planned evil tariffs on those and other u.s. products are designed to hit swing states in american elections florida ohio
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pennsylvania that trump's republican party will need to hold congress in midterm elections later this year despite days of opposition trump remained a man of steel tariffs yes of that even if you needed a reminder to sign them well the european union is the top trading partner of the united states in goods and it is the top u.s. export market joining us now from london is russell jones economist and partner consulting good to speak with you again so why is chum doing this given that the europeans have been warning for some time that they will retaliate. it's a very good question my suspicion is that this is increasingly desperate president who is in a rather chaotic state of mind at the moment searching out for policies that he can actually put into practice which will appeal to his core domestic support and
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protectionism is one of those policies he doesn't actually need to have a great deal of support from congress to put in place these initiatives and he sees himself as fulfilling some of the promises he made during the election campaign but generally speaking i think it's a president who is searching out to demonstrate that he can actually deliver something of substance and how vulnerable is the u.s. to european terrorists i think the real concern about this this whole process is that we see rounds of retaliation and encounter retaliation and so on i mean the terrorist which would have been announced thus far are in themselves really relatively small beer especially now that the united states's is thinking of carving out certain exceptions for other countries such as canada and mexico. in
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themselves they're not going to create a lot of damage to the global economy or to the european economy but the real concern is what follows subsequently and now that the united states has decided to go down this path whether it can stop whether the world can stop there are plenty of examples from history where trade was rather the mr as mr trump or suggested can be good things actually trade wars can be extremely bad extremely damaging for the world economy so really this i think is a. a misguided policy and if the reserve one thing that i've learned over the course of my career it is that bad policies tend to end up with bad macroeconomic outcomes and you talk there about about going down this road and so in the in the future i mean are we witnessing a sea change in how global trading rules are being used because trump is using
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national security. as a reason for this for example would this set a worrying precedent yes i think it would i mean that that mechanism is itself very questionable but really if you look at what trump is suggesting i think it's it's troubling on two levels first of all it is symbolic of the united states abandoning what has been a very multilateral a very liberal attitude towards trade over the post-war period so all the way back to nineteen forty five it has been the multilateral legit liberal head german in the global economy and by abandoning that role it leaves a vacuum and the question is how that vacuum will be filled i think the european union would like to think that it can occupy that vacuum and it will retain many of those liberal the multilateral priorities but the danger is that it gets filled by
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other forces not least those in china where perhaps we can be less confidence that the sort of trend that we've seen in international trade since nine hundred forty five is sustained and on a second level it's a bad policy simply because it's economically illiterate. you know trade balances are determined by macroeconomic forces how much a country spends how much a country saves by individual trade deals and the fact is that for many decades the united states spent considerably more than it saved that's why i have. an external deficit and the sort of policies that trump is pushing through in terms of tax cuts and deregulation will actually encourage that excessive expenditure to continue so there's a there's an incoherent an inconsistency with what the u.s. is trying to do in terms of domestic policy as well as this international angle so
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what would a transatlantic trade war look like then and who's who's going to pay the bigger price consumers or manufacturers at the end of the day you know consumers will will suffer but so will the industry and protection is a recipe for inefficiency it's a recipe for less competition it's a recipe for higher prices it's a recipe for lower productivity. you know there aren't really very many things good which come out of it initially perhaps you can sustain economic activity in certain sectors i think that's what trump is really trying to do is try to protect the steel industry for example and you can you can achieve that end but it's a very narrow end the broader picture which comes through over the longer term is that consumers and businesses everywhere will typically suffer considerable costs if this process is allowed to gather momentum russell jones thanks very much for
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being with us thank you for joining us now via skype from washington is jacob kirkegaard a senior fellow at the peterson institute for international economics thanks so much for being with us so your organization is involved in in talking up the benefits of the global trading system so tell us why free trade is worth fighting for all fundamentally is certainly correct the peterson institute believes in the economic potential of globalization we believe that you have free trade it leads to more investment it leads to more jobs in fact in some sectors it leads to. higher productivity and ultimately higher living standards but what is and that is certainly worth fighting for but what we must never forget which we say consistently advocate as well which has unfortunately been fucked up and here in the united states in the last number of decades is that when you do free trade agreements there are going to be winners and losers from them that is the nature of
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efficiency and hans singh measures but it is up to domestic policies to redistribute some of the gains the overall bigger pie from a free trade agreement making sure that parts of that additional wealth and economic benefit also flow towards those that lose from the ad free trade agreement that has been forgotten here in the united states it would be a pity if that wrong lesson from free trade agreements would be so good imitated around the world and should organizations like the w t o be more upfront about that that there are as you say winners and losers when it comes to free trade that has led to any wage inequality and people losing out on and so on. should they meet be more acknowledgement and more attempts to deal with that you
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could say that this is something that you know trade specific wu like organizations should advocate but quite frankly that would mean the dubby cio and others taking positions on purely domestic policy issues which i think would be recenter would in many countries also met lee it is in my opinion incumbent upon the political leaders that strike free trade agreements and the backers that they have that once these free trade agreements for obvious often selfish economic reasons. to recognize that there are moves or from this process as well ensure that these losers are indeed compensated in some ways in my opinion should really first and foremost be part of the domestic political process of agreeing to a free trade agreement good to speak with you jacob kirkegaard in washington that
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are out just as donald trump signed those trade tariffs in chile the ink was still drying on a revamped trade deal the transpacific partnership will get rid of tariffs for eleven countries and connect economies worth ten trillion dollars one of the biggest winners is expected to be vietnam the oldest porcelain factory in vietnam hasn't changed much since it was opened in one thousand nine hundred sixty back then it was operated by the communist government of the former north vietnam when the country was divided today it's united under communist rule but the government has embraced capitalism like most state owned enterprises this factory has been privatized and will soon move to a new purpose built industrial park on the move into a new factory will help us develop you can see all our machines our old so will invest in more modern production lines for more than twenty years vietnam was torn apart by war it ended in one thousand nine hundred seventy five with the north
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defeating the south which was backed by the united states communism emerged victorious but the leaders soon realized that their centralized economic system had to change economy clearly worse your best picture. the government embarked on a series of reforms to open the country up and allow market forces that now has one of the best performing economies in the world when vietnam began reforming in one nine hundred eighty six its total trade was worth only six hundred forty million dollars a year it was really only doing business with the likes of china and the former soviet union just over thirty years on as its economic borders have opened that figure has slipped to more than four hundred and twenty billion dollars but some believe it could do even better and say the government must continue evolving to combat problems like rising inequality it coes by corruption. in an informal economy and vietnam must try to reduce it and now that now might create
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new intently to modernize economy the process is ongoing and reforms like increasing efficiency and breaking down bureaucracy may be pushed along by trade deals like the trans-pacific partnership some may question the pace but certainly there are direction of the reform is very welcome but some of that will need to be accelerated for for the domestic private sector to be able to grow more that it has been so far that's certainly the goal of this company which used to import its clay and export the finished products price fluctuations mentored eventually became a domestic supplier only c.p.p. and a new modern factory may allow it to realize its goal of returning to the international markets all right still to come on counting the cost. i'm satisfied and wish to recycling plant into algae tell me why the gulf crisis has been helping businesses like this one time and you pay.
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the first self driving cars with no steering wheel its makers are hoping this is the future of transport just one of the new innovations on offer at the geneva auto show this week i caught up with the c.e.o. of my kona and began by asking him about the concept car he brought to this year's event the day we are showing a car that is there after tomorrow i mean it's the next next future in the sense that said that i having car represents the future of technology in the. car in the story we believe in the shelves arriving cars and the future because you can think of a car that's for when the hop you can call and come in pick you up if you are all member in you to play golf or to wear a coat or whatever you want to look to go and you don't have to be involved in driving because the cottage doing itself i want to ask you about china it has
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already become the world's biggest car markets. will china for example dominate its allee's electric car markets in the next ten years we have been we opened the office in shanghai in two thousand and eleven and immediately we showed an electric current because we thought at that time that all the western where the was in the prices because of the financial crisis that you everybody remembers also that koreans are said it was in deep crisis there were very few projects going on in western europe but in america and the land of the carmakers where to internalise their projects of their way of doing that by themselves. at the same time china was growing double digits so we decided to go there we started as wi-fi persian and today we are all about eighty because as you know that market is by far their larger card market in there were
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a lot of fear then you could have said that there be a register where all that twenty eight million and we believe that that and there is going to continue now the chinese government has been the first one to really believe in the electric cars for three or four reasons that my opinion at least first of all because. they have the political power there is nobody in the western world that can the side of decision power they have for example if their major offit major she'd been in china this side that taxi or they've got a bunch collection of their horses delivery has to be electrical is going to be an electrical nobody can make that kind of that she's in in the west and word second in order to finance this industry you need a lot of money and as you well know in the western world we've done them that kind of money for them and the zone is china is one of the lot of just words producer of
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lithium and it to me is they're all materiel for their production of lithium batteries and therefore one is that they're one they have to shoulder their real pollution problem in the big cities so they are the future of this industry as long as car an electric cars and says driving cars out of concern today so jeezy galileo thank you very much and maybe my pleasure thank you now a cautionary tale perhaps when it comes to the benefits of artificial intelligence it sounds like a scene from a science fiction film and news this week that amazon's adiga to voice assistant alexa has been laughing at its human owners the smart home devices been breaking into spontaneous fits of creepy robot laughter and it's got quite a few people stressed out amazon hasn't said how widespread the problem is but assures uses they're fixing it now things are looking up for france's economy but a skill shortage could put the brakes on growth and sasha butler reports. in the
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french city of konar blitz another busy day at this building material supplier business is booming for the subsidy group that has outlets across france to keep growing the company needs more staff but it's struggling to find skilled workers. this fall says we have five thousand three hundred staff but two hundred and sixteen job vacancies we may need sales people forklift drivers and tireless it's really hard to find people who are specialized in areas such as woodwork so it's difficult for us to recruit staff with the skills we need. the boss says that twenty years ago people joined young trained on the job and worked their way up but today that's rare because he were people are attracted to industry. we can't feel vacancies internally anymore so we must recruit externally but the skills we need are not always taught in training schools so there's a lot of available talent we train in the house but it's not enough. france is
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experiencing its biggest economic growth in six years but nearly half of its manufacturing companies find it hard to recruit staff even though unemployment is high experts say the labor shortage could slow growth there isn't new or clear for growth in the next few months but as a liberal they g.'s can be a real drag for. the next few quarters the french government wants to fix the country's labor shortage and get more now people into world it's already reformed the labor allow the workplace to be more flexible and it wants to boost the number of training in apprenticeship schemes like this one. teachers at this school near paris hope the government's focus on training will improve the image of apprenticeships and create more opportunities please look for your variables whoever you think when a young person arrives at a company with two years of training like this they are much more attractive and
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it's what companies want for them all of the users are going to want to learn as much as possible here then one day i open my own company to what extent the government's reforms will ease the labor shortage will be clear for a few years but investing in this generation can only help the economy in the future natasha for counting the cost. france and finally the international monetary fund says the economic impact of a nine month blockade on qatar is easing its latest figures show the gulf crisis has actually helped the country to become more self-reliant saeed it reports from doha. but. out of a crisis comes opportunity and for twenty three year old abdullah it's this a new machine to make it cottons made from recycled paper it can produce as many as one hundred thousand of them a day meaning outdoor low be able to meet a boom in local production since the blockade after the gulf crisis we lost all our
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main costs almost because they are mainly from saudi arabia land and u.a.e. but we never gave up on our business and we continued searching another new way to run our factory also weighed the owns the only paper recycling factory in kata which has four times as many customers since the blockade started in june and the factory exports eighty percent of its recycled paper to the likes of china sri lanka and amman and plans on expanding world series added to this and it turned in for how it's aimed front and side on this machine here the home prices say thirty seconds and up with three thousand full paid for the want to use is also recycled which means a very different way fish costs are reduced and he said it takes the company comes in every fist in order in the face of this one time. more than three thousand
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new businesses have opened in carthage since the gulf crisis spurred on by a sense of national pride and a need to rely less on imports the emir of qatar is keen to implement self-sufficiency as soon as possible we didn't actually feel the. accept the higher prices of of some. materials. the challenges of the blockade are continuing but qatar development bank says it has enough resources to support startups and entrepreneurs to take it from the idea stage up until access to funding and investment access to markets and how we can take them globally little back in the paper recycling factory owner says a lack of trees in qatar helps teach the younger generation the importance of recycling and how the gulf crisis has helped him turn the wheel of fortune from one man's trash to another man's treasure and that is our show for this remember you
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can get in touch with us by tweeting me at has him seek and use the hash tag a j c t c when you do or drop us an e-mail counting the cost at al-jazeera dot net is our address there's more view online as well at al-jazeera dot com slash c.t.c. that will take you straight to our page which has individual reports links and entire episodes for you to catch up on that is it for this edition of counting the cost and has a secret from the whole team here thanks for joining us the news on al-jazeera is next. a suspected money laundering operation this time was different. an accidental discovery the wharfs initial suspicions. unravels an unprecedented scale of systemic international corruption people in power investigates a racket of such magnitude that it threatens government and redefine the rules of impunity. the car was. at this time. the
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