the wto is essential to enforce the agreement free trade is fair trade the wto while enforcing rules to resolve trade disputes. the appellate body lifting the mandate to diminish rights and obligations that they need to increase transparency making hearings open to the public and also to make sure it provides on a fair basis with that settlement process to update the rules. it is critical to the economy in the city such as iowa this is extremely incensed - - essential it must be fair i yield back the balance of my time. >> the gentleman from florida. >> the gentle lady is recognize. >> i am grateful for my colleagues on the committee who pass this leadership - - resolution on this leadership issue i agree with much of what has been said with the intent but feel is not reflected in the resolution as written paragraph it reflected the balanced nature of what is said in this committee today i could've supported at. the george w. bush administration had concerns with the appellate body nevertheless when it left office there were seven judges and it was fully functioning. the obama admini

the bipartisan resolution usaffirms he was commitment to the wto causing to learn work with other wto members to address long-standing concerns of the appellate body. with remediate the failure of critical notification obligations and to create new rules of peace prosperity open markets and open societies. and isor pleased to recognize mister kind for purposes of an opening statement to thank you for scheduling this resolution it is as important as it is timely it establishes congresses support for the wto to let him throughout the years to have a rules -based for member nations to resolve their trade disputes peacefully and how to shape the workers and farmers to have the ability to fairly compete to enforce the rules when those that choose not to comply. it's also last tuesday on decemh the appellate body ceases to function it requires three to have a quorum of those three currently serving two terms just expired we as a nation have been blocking further appointments to that panel as he work on crucial reforms to bring it into the 21st century including the current one having an opp

that's the wto director general coming to us from geneva. france is moving into a second week of protest over pension reform and britain is moving towards an election. we talk about -- talk with nicholas duncan of the atlantic council. this is balance of power on bloomberg television and radio. ♪ elevision and radio. ♪ this is balance of power, i'm david westin. french president macron is facing the biggest opposition to his policies yet with hundreds of thousands taking to the streets over possible pension reforms. we welcome nicholas duncan, he's coming to us today from paris. it's good to have you, we have been watching these demonstrations industry and we have heard about the schools and transportation getting shut down. what's going on? askings: the french are the same question, this is a political failure by emmanuel macron and the french government . there are 42 different state pension plans, many giving special privileges, and no private pension systems in france, which may be surprising to anyone familiar with the u.s. , the u.

if you want the wto process, and i do like the wto process, it has to be reformed. grassleyat was chuck talking about the u.s. decision to block appointments to the wto appeals panel. we welcome someone who served as the deputy director general of the wto as well as deputy u.s. trade representative, rufus yerxa is now president of the national foreign trade council. he comes to us from washington. you know this body terribly well. explain what the dispute about. it is not entirely possible. we of ron wyden agreeing with chuck grassley that there are problems with this process. rufus: i think everybody can see there are problems. on the other hand, everybody says we want the wto to work effectively. there are a lot of disputes we had in the past where the u.s. has won cases. as an offense of tool we like it. we just want to see some improvement in the dispute settlement process. the administration has taken a hard line on this and gotten a lot of countries upset. wem a business point of view want our administration and the other side to talk about what are the kinds

so how did the wto get to function. so how did the wto get to this impasse? the us has blocked the appointment of replacements. here is andrew walker to explain. the wto's system for resolving disputes has been called its crown jewel and it is designed to make sure the scales ofjustice are evenly balanced no matter the size of the country. but it is facing a major crisis. when countries losing a wto dispute, they can appeal to the appellate body. it is supposed to have a pool of seven judges. three are needed to rule on an appeal. they are appointed for a fixed period, but trump administration has blocked the replacement ofjudges when their terms and, saying they are effectively creating new trade rules by the backdoor. the numbers have dwindled to the point the court is running out ofjudges, so the appellate body won't be able to take on any more cases. this means any country that loses in the first stage of a dispute can block any ruling by appealing, which freezes the process. all this feeds into concerns over the process. all this feeds into concerns over

when countries lose in a wto dispute they can appeal to the body. it is supposed to have a pool of seven judges, three are needed to rule on an appeal. they are appointed for ethics. but the trump administration has blocked a replacement ofjudges in their terms and, saying they are effectively creating new trade laws by the back door. their numbers have dwindled to the point that the court is running out ofjudges so the apple at body will not be able to ta ke apple at body will not be able to take on any more cases. this means any country that loses in the first stage of a dispute can block any ruling by appealing, which freezes the process. all this feeds into concerns over the future of the rules —based global trading system. many are worried the world may see a return to the days where might is right. let's turn to gaming now, because japan's nintendo is officially launching its popular switch gaming console in china today. interestingly, it's teaming up with tencent, perhaps the biggest gaming company in the world. let's go to our asia busines

wto members have agreed on the 2020 budget, averting a shutdown. as the issue heated up among members. usbring you into give perspective on these multilateral organizations not in favor at the moment. to alose was the wto shutdown. are we out of the danger zone? >> not completely. mechanisme settlement requires judges. two judges retire this month. it will still exist, but frozen. set of issuesoad with the wto that need addressing and reforming. the time has passed and economies have changed. createa was to international agreement on a that, fair trading field has helped to power the strongest global growth in the history of the world. to allow that to lapse would be a mistake. i don't think there is much danger our allies would be willing to let that go. >> to see that potential labs come at a time we are negotiating a big trade deal between the u.s. and china, the u.k. and the european union, what would be the enforcement mechanism if the wto is not a viable alternative? have enforcement, but the wto was created to create a level playing field br

so, how did the wto get to this impasse? here's andrew walker to explain. the wto system for resolving disputes has been called its crown jewel and is designed to make sure the scales ofjustice are evenly balanced, no matter the size of the country. but it is facing a major crisis. when countries lose their wto dispute, they can appeal to the appellate body. it's supposed to have a pool of sevenjudges. three are needed to rule on an appeal. they are appointed for a fixed period but the trump administration has blocked the replacement ofjudges when their terms end saying they are effectively creating new trade laws by the back door. their numbers have dwindled to the point to the court is running out ofjudges so the appellate body won't be able to take on any more cases. this means any country that loses in the first stage of a dispute can block any ruling by appealing which freezes the process. all this feeds into concerns over the future of the rules—based global trading system with many worried the world may see a return to the days where might is right

isn't done, then the trading relationship between britain, out with the eu, and the eu will move to wto, but that's not the same as staying in the eu. it's going to be a very dystopian five years if we are going over language and terminology, but i would just like to point out that crashing out of, and defaulting the daily telegraph is saying this default into wto arrangements for the eu is commonly understood to be leaving with a no—deal. that is what the last two years has commonly understood to mean crashing out without a deal. we can't argue about the language for the next five yea rs, about the language for the next five years, that's going to be nuts. years, that's going to be nutsm has nothing to do with linkage, it has nothing to do with linkage, it has nothing to do with definition and reality, which is that we have left on the terms of withdrawal agreement, if we then don't get a trade deal coming out week, europe doesn't get a trade deal, then it's wto. but i have to say, that we should not come of this will be the remainders last fling, want to? as they finally agree that

in the la st default to wto arrangements. in the last few years, if this has been discussed, defaulting two terms, widely understood to mean crashing out. that is what he is writing into law will happen. by the end of 2020. is doing that firstly to look as though he is doing things. secondly, he is doing it because he thinks that operating within that tight schedule will put russia presumably oi'i schedule will put russia presumably on the negotiators. it also puts a shot on britain. you could easily argue that it ties britain's negotiating hands behind its back by imposing an artificial deadline on the process. ijust want to add, it's quite important that the other thing he is doing about this brexit bill which is looking after the queen's speech is that he is removing the things that the telegraph describes as sweeteners which were offered to labour and peace in order to pass the bill before the election, things like employment protection rights, coming out with the bill, environmental protection rights, they are coming out

the wto's roberto azevedo. in france, people are protesting against the government's pension reforms and we are expected to find out details today so what could these changes entail? at the moment, france has a retirement age of 62. one of the lowest in the developed world and some railway workers can even retire as young as 52. well, france has 42 different pension schemes and the government would like to unify them into a single system and if the government is unable to push through with these reforms, one independent forecast was there could be a deficit of $18 billion us by the end of 2025. to the united nations climate conference in madrid and it wraps up on friday. discussed, how to get more businesses involved in defending the environment and attract investments into sustainable technology. so we any closer to a solution? edf is a non—profit organisation that tackles those problems and they have been working together with the companies. i asked the corporate partnerships —— partnerships managing di

it's clearly a big blow because the regular way that the disputes are conducted in the wto is completely paralysed at this point in time. but that doesn't mean dispute settlement is stopped. in fact, members can still resolve their disputes to consultations, panels and they are thinking about other mechanisms such as arbitration or good offices of the director—general. so there are a number of things that can be done that will be a stopgap solution while we are trying to fix the situation of the regular channel. that is do the upper —— that is through the upper late body —— appelate. we have more information on the bbc news website. you can see the detail, trade a huge issue in business at the moment in daily moving markets given what is happening between china and the us at the moment. injust under an hourfrom now, saudi aramco will be making its stock market debut in riyadh. the state oil company will be raising a record $26.6 billion, which will means the overall value company will be an eye—watering $1.7 trillion. let's get more on this story now from our middle east busi

a wto panel on monday said that brussels had failed to comply with its rulings. as the cop25 climate conference gets under way in madrid, some of the planet's biggest polluters are in focus. the boss of australian airline qantas alanjoyce spoke to the bbc‘s mariko oi, claiming the carrier was pulling out all the stops to combat the damage its business wreaks on the environment. from 2020 we will be carbon neutral in all of ourgrowth, including project sunrise, it will be completely offsetting its carbon emissions. we have already doubled — we have the largest carbon offset programme in the world. 10% of our customers at qantas.com offset their carbon emissions. we have said we will match that dollar for dollar from three weeks ago, and by 2050 we will be net—zero carbon emissions, by investing in sustainable aviation fuels and offsetting. reports say you are about to cut jobs just before christmas. is that true? like in everything we do, we are hiring in areas and we cut back in areas. we are hiring hundreds of pilots, cabin crew and ground staff, and there

even with china's entry into the wto we see enforcement challenges. our view is the top administration is on the right path in ensuring those enforcement mechanisms are in there as you know from having this issue. that's been one of the holdups. it's been china's unwillingness to include concrete enforcement mechanisms in the agreement. some accounts of the challenges and what caused china to walk away earlier this you was because of our insistence on including those important provision in the agreement. we agreed have to be in their and we are looking forward to china moving on the issue. >> host: just to build up on what stephen was talking about, intellectual property theft, the chinese governments involvement in the tech sector. are we getting to a point where the world wide web and the internet are going to be bifurcated, different internets for different people? >> guest: i certainly hope not. we've seen china take steps in that direction. we so russia announced a couple weeks ago their desire to create a russian internet. that moves us in the w

he's -- the chinese say that will have to be under wto rules. the second big element are commitments from the chinese on a few structural changes. intellectual property enforcement. they will do more of it, they say. that is something they are doing already. the third element is something on currency. the chinese have long been accused of being a currency manipulator. in this agreement, they agreed to be more transparent about how they manage their currency. how they manage their currency. we will see what happens. the fourth element -- imports from china do to go into effect on sunday is also agreed to lower the rate on about $110 billion in imports from china that took effect september 1. that will go down from 15% to 17 point -- from 17.5% to 15% immediately. those are -- this is the first time we have seen president trump rollback any tariffs, and that is a big confidence building measure. the big problem with this agreement, and we are already seeing folks point to it, including chuck schumer, is this does not address some of the big long-s

rules by the end of the year, so is wto rules by the end of the year, so there is now one yet repair for one of those options. there is a concern amongst many that given the short timeframe the uk will have to agree a lot concessions. what are businesses worried about?” agree a lot concessions. what are businesses worried about? i think what is interesting about the withdrawal bill is workers' rights has been taken out, and up ahead are some tough choices for everybody, whether businesses, consumers, unions, we are going to have to start giving up things like standards, right, to compensate for the cost of coming out of the eu and thatis the cost of coming out of the eu and that is going to go on for quite some time. when you see that going in terms of workers right?” some time. when you see that going in terms of workers right? i think it is going to have to be a big debate, and that will be much of the public debate, isis, overthe debate, and that will be much of the public debate, isis, over the course of the next 12 month. the uk needs to bea of the next 12 month. the uk need

i've a lwa ys is conducted on wto terms. i've always wanted to have a genuine free trade agreement with the european union, that's because of my business background and because of my business background, what is important here politically is we voted to leave the european union and that means a clean break from its institutions and we can do that either wto terms or on a canada style tra d e either wto terms or on a canada style trade deal and that's why i welcomed boris johnson style trade deal and that's why i welcomed borisjohnson starting to talk about this. when it comes to trade, it's not so much about ta riffs trade, it's not so much about tariffs with these countries. it's about non—tariff barriers as well, isn't it, or it will be, the masses of regulation, the labyrinth of forms for people to fill in and that will have an inevitable, punitive knock on effect on british businesses. it's not a labyrinth of forms, one more piece of paper filled in online or on a mobile phone. you talk about regulations, i repeat the

if you want the wto process, and i do like the wto process, it's got to be reformed from the standpoint of getting decisions within the 90 day period of time they ought to be making decisions, and to make sure that the precedent set in previous cases are followed and not changed by the appellate body. david: finally, you mentioned earlier funding the government. do you have any doubt in your mind that we will have a continuing sen. grassley: one of two things will happen next week. either we will get total agreement on funding the government through september 30 with what we have an optimist appropriation bill, or if that cannot be done, we will have a continuing resolution that will carry us through february. in that case, we will have to make a final decision in february. government will not be shut down for 35 days like it was last year. senator, thankd: you very much for joining us. alix: bloomberg's david westin and senator chuck grassley of iowa. we are waiting for cpi, the latest read on inflation in the u.s. we will be getting that in about 20 seconds. in the market, steady as s

edict from the wto ? >> yes, i would have u.s. try to reform the wto, they have ruled in favor of u.s. in many of these cases. >> i hate tariffs, they are taxes, they take money out of the hands of the consumers. but you think about digital taxes in france it probably hurts their consumers. the way they would do it i would as u.s. government work with our tech companies to let the french people know, and encourage them to have a backlash against their own government, say why do you make things forex penceive for -- more expensive for us. >> listen to president's words, he is not against taxes or taxing big tech, but he wants to do the taxing, that is the problem the whole idea of taxes now imports, on cheese, wine, whatever, who pays those taxes? americans, this is disheartening that president's response to unfair taxes in france to levee taxes on americans on things that i want to buy. david: what would you do? >> freedom. make the u.s. the freedom center that beckons all businesses. does anyone want to be like france with 10% un

the wto's most critical function as a trade referee is paralyzed. they lost their ability to rule , meaningspute cases president trump can retaliate against american trade partners without fear of the view tl oversight. they are the second tier that determines whether members are abiding by the rules of international trade and have the in billions of dollars of commerce. in the last two years the u.s. has refused to sign up on nominees to fill vacancies on the panel. the terms of two more members of the panel expired yesterday, meaning there aren't enough to sign off on wto rulings. the u.s. says that the panel has overstepped its mandate. [no audio] money machine that rivals his hedge fund. digital securities, sometimes dismissively referred to as the digital trading arm, actually referred -- actually more lucrative than you might imagine. tom maloney is with us with the details. this is fascinating. people seemed to be dismissive because they thought it wouldn't work as well as it is today. for people not familiar, this is the market making arm of

we are seeing with the wto as well but next week, the senior body at the wto will be dispanned mainly because the u.s. has rejected or vetoed all of those brought up for the key roles the u.s. has been pulling away from these multilateral organizations. what does this do for the pra je t trajectory is there a path back >> it is a tough question but an important one. as you were saying, many of the problems we are thinking about today have been there in the past the idea that united states, although the architect and cornerstone of the post world war ii global architecture, including the trade which became the wto, has still even in the heyday, the united states was much more unilateral it never ratified the treaty on the national criminal court and many other multilateral initiatives. what we are seeing under the presidency of is more a difference of degree rather than kind the question of can they be rode back after the trump presidency ends either next year or in 2024, that is a good question for u.s. analysts. i think the direction of travel will remain as it is even if the intensi

. >> right well, look, the wto is the multilateral institution that is supposed to govern trade rules trade disputes trade negotiations between us. and that is a system that has not been working as intended in recent years you know, one of the big problems with the wto is it didn't cover any of these -- the -- the majority of these things that we were negotiating with china and so the wto needs to adopt new rules to deal with issues like forced technology transfer. now, what has happened in the last week is the u.s. has also put pressure on the wto to improve its dispute settlement system and, in particular, the u.s. has blocked the ability of -- of the appellate body to continue to function now, i see that, in the short-term, really not making as big of a difference as most people think members who want to appeal can come up with ad hoc arrangements but what i really hope that it does is it gets people in geneva to change their mindset and to figure out how do we create a system that is fit for its purpose? that deals with these problems with china and that is quick and nimble where

we won in the wto, we won $7.5 billion. we never used to win before me because before me the united states was a sucker for all these different organizations and now they realize the wto realizes my attitude on them if they don't treat us fairly, tell you what will happen and we have been winning a lot of cases with the wto, we virtually very rarely did we ever win a case, took advantage of the united states and that's where it is. we won $7.5 billion and if france puts a tax on our companies these are companies that are against -- if i read the papers correctly, don't know why they were against me but they were against me, they are supposed to be powerful and yet i won so maybe they are not so powerful but they are american companies. i don't want france taxing american companies. if they are going to be taxed it is going to be the united states will text them. >> the british election -- >> i don't want to complicate it. i have won a lot of elections for a lot of people. look over the last few months, two elections in nort

i think wto needs reforms. of wto is aoblem can't keep pace with the times. so as to move wto it forward. of course in terms of ip protection and subsidy for mentioned,panies she we remove any unreasonable subsidy when we can conduct reform and promote market economy. tom: are we looking at below 6% growth in china? believe inally general next year's gdp will be better than this year. china's economy will be better than this year. china's gdp growth will be slow for the first half of the year but it was steadily grow for the second half of the year. david: tom mackenzie with china's former vice minister of commerce. staying in china, we are talking pharma and health care. the country is expanding its generic drug program to include additional 33 drugs. it could put people in a price war. and they are set to launch global tryouts despite skepticism about efficacy. let's start with the drug program which has been a, quite a big bigotry change. >> it is a big reform on the part of the government to save money on the buying of generic drugs which have been around

. >> the wto is looking at their moratorium on e-commerce. i believe that a set to expire next month. do you have any expectations for whether that can be rendered or what might come of that? >> that is an important discussion. what is interesting about the wto doing it, it is a worldwide body. adoptave the ability to policies that multiple nations will address. solution thatnal we are looking for is best out of the oecd. they had made progress. they have country members that almost every country follows their guidelines. we think that is the best way to get to a global solution. >> the concern, if france imposes its own tactics, we might see bender countries like and yet, south africa, elsewhere start to impose their own taxes. >> many countries have suggested they will do so. on the geographic scope, that is problematic if you have different countries adopting different versions for taxation. ,n an innovation point of view it makes it difficult. we are trying to reinvent digital services and treat them differently for tax purposes than phys

you have these two announcements from the american trade department first following the wto ruling saying countries are to cut on some of these following some illegal subsidies to airbus. the u.s. came out saying they are thinking of putting extra tariffs on some european goods you remember in october, the u.s. already imposed some t tariffs on the products saying they could recall some of this money they failed to make because of these illegal subsidies to airbus. french wine was taxed at 25% tariff but some goods escaped. leather goods or champaign yesterday, the u.s. announced champagne is now on the list and lvmh was slightly hit this morning. that comes after the investigation that started in july when the french parliament announced the tack on $25 million of those made in france following president macron trying to come to a european census france decided to go its own way and voted in july when the u.s. started the investigation and had some hearings with spokes people from facebook, amazon and google to discuss whether this was an unfair limit to trade they came up with the concl

america can pursue its economic interests. >> bret: wto, thank you for bringing that up. panel, thank you. next up, christmas politics and a controversial nativity scene. [ indistinct chatter ] [ electrical buzzing ] [ dramatic music playing ] [ squeaking ] [ screaming ] elliott? [ gasps ] elliott. you came back! my son. my, my family. lot's changed since you were here. it's called the internet. whoa! -whoa! holiday movies. ♪ i'm dreaming of a white christmas ♪ ♪ family. home. woo! [ gasps ] woo-hoo! woo! i'll be right here. ♪ >> bret: you probably know, christmas is two weeks from tomorrow and as usual the politics of the holiday are making use in various parts of the country. she corresponded jonathan holland with the controversy over some unusual displays. >> they are certainly not traditional nativity scenes in los angeles and at claremont united methodist church east of l.a. where reverend karen is gettingthe public debate sheg for when she posted pictures of the unusual nativity on facebo facebook. >> this is public theology, or raise the awareness of compas

we said we would adopt the eu schedules at the wto. what that means is the tariff regime and the quote at regime that we have put forward which have not been accepted and have been challenged by other countries in the wto, we would be falling into a very bad situation where all of our exports may be subject to increase tariffs. what can you do to stop it? we can make it clear to the public what is happening. we will not have a majority in parliament to stop it. that goes to the point i was making. he now has the power to do this and what has happened because of the majority he has he has reverted, it has revealed his real plant which could be hugely damaging to exporters. he said repeatedly during the election campaign and he was criticised for it that if he were to win power, he would not extend the deadline beyond december of next year. it was out there, people knew what they were voting for. and that is what is now on the cards. i don't think many people understand the schedules of the wto and what they mean. talking about what peop

a wto panel on monday said that brussels had failed to comply with its rulings. video—sharing app tiktok has been hit with a class action lawsuit in the us that claims it transferred "vast quantities" of user data to china. let's explain, for those who don't know, it's the video sharing app mainly used by young people, teenagers, they video themselves filming singing songs, videos, that sort of thing. not that dissimilar from instagram but shorter. extremely popular, a lot of young people ‘s data is on there. the lawsuit accuses the company of "surreptitiously" taking content without user consent. karishma vaswani has been following the story in singapore... sta rts starts off as great fun, grows into something massive and then it runs into confrontation and contention. that is to talk all over. david, i don't know if you've used it. i have! yes, i have certainly dry it, there is an element of addiction, when you start using the app but it's not getting any easier for the company, last week we reported on how it became embroiled in that censorship row over th

basically reverts to wto rules. they lose tariff access to the eu. it is a risky gambit. were thinking that press johnson would take a more reasonable route of action. given that, he seems to be drawing a line and ready to play hardball. how do you see people positioning now going forward? >> i think the markets get much more neutral. the market was overweight sterling going into the election. it is an uncertain period. markets hate uncertainty. i think it is a much more two-way risk now. to me, if we step back, the fundamentals are for even weaker sterling. i think we could theoretically go back to the earlier lows of the summer, around 120. a lot of this brinksmanship, i have no doubt mr. johnson is trying to try hard line and get a better deal, but the eu has no patience. they will take a hard-line as well. i'm 65% chance of an extension beyond september. 10% chance that they actually deal by percent chance of a hard brexit. to me, .5% is not significant. -- 25% is not insignificant. romaine: oil, fixed income, one of the common threads we have seen is this idea of the

datahen world organizations that pattern after the wto on data and technology, you get the eu and japan on board. right now china is developing their own china ecosystem and .rying to export it to africa google, why not use our operating system? these countries aren't saying yes because they don't want to get rid of global -- get rid of google and go with a crappy chinese search system. [laughter] israel -- this is real. so i would build a world data organization, and then just like china thought it had to live up to certain standards to join the wto, we would say, you need to get your phone lines under control to join the world data organization. the right stance toward china is to outcompete them, and that is what i will make sure we do when i am president. [applause] >> thanks for coming. [applause] >> [indiscernible] [laughter] >> one more round. [applause] >> if you want to talk to mr. yang, please line up here. >> ok, a quick one. . 1, 2, 3. >> i to get a picture. >> let's do it. 1, 2, 3. appreciate it. >> how are you? >> can i get a picture with you too? mr. yang: of course. 1, 2

where the president opposes the wto. and even if you have a functioning wto, it can take years to become effect. is it a section 301 process under u.s. law? look how effective that is with respect to china. we have a tariff war. have we done anything on ip? when the administration announced some of the early provisions of this in may of what they were looking at to do an ip, they were talking about taking a step back there on biologics. so what's the alternative and the effective protection? and what are we saying to the rest of the world and the future ftas if the administration is saying this wasn't a bad deal on it because we're silent on biologic. we went from zero additional years of protection. what are we saying and what can we expect? thank you. >> i think the question kind of answers itself, right? >> shockingly. >> no, this is a problem. right? but the problem we have is that the consensus on the democratic side of the aisle is that u.s. law should be zero also. so if that's your starting point, we're miles apa

. >> i know the wto is looking at their moratorium on e-commerce and i wonder and i believe it set to expire next month if i am not mistaken but do you have any expectations for whether that could be renewed or what might come of that celebration? >> guest: that's a parallel discussion and what is interesting about the wto doing it is as with the oa cd is a worldwide body and they have the ability to adopt policies that multiple nations will address. the multilateral national solution, i should say, they are looking for and we think it is best out of the oa cd. they've made a lot of progress in the oa cd has specific country members but almost every country on earth follows the oecd guidelines we think that's the best way to get to a truly global solution. >> if france imposes its own commerce that we may see bigger countries like india, south africa, will they impose their own taxes this year? >> guest: many countries have suggested they will do so. on the geographic scope obviously that is problematic if you have different countries adopting different regimes for taxation but also w

where the president opposes the wto. and even if you have a functioning wto, things can take five to 10 years to be in effect which is well beyond the life cycle of this innovations. is it a section 301 process under u.s. law? look how effective that is with respect to china. we have a tariff war. have we done anything on ip? when the administration announced some of the early provisions of this in may of what they were looking at to do in ip, they were talking about taking a step back there on biologics. so what's our alternative and what's our effective protection? and what are we saying to the rest of the world and the future fta's if the administration is saying this wasn't a bad deal on innovation because we're silent on biologics. no, we went from twelve to ten to zero additional years of protection. what are we saying and what can we expect? >> i think the question kind of answers itself, right? >> shockingly. >> no, this is a problem. right? but the problem we have is that the consensus on the democratic side of

where the president opposes the wto. and even if you have a functioning wto, things can take years to become effect which is well beyond the life cycle of this innovations. is it a section 301 process under u.s. law? look how effective that is with respect to china. we have a tariff war. have we done anything on ip? when the administration announced some of the early provisions of this in may of what they were looking at to do an ip, they were talking about taking a step back there on biologics? so what's our alternative and what's our effective protection? and what are we saying to the rest of the world and the future ftas if the administration is saying this wasn't a bad deal on it because we're silent on biologics. no, we went from twelve to ten to zero additional years of protection. what are we saying and what can we expect? thank you. >> i think the question kind of answers itself, right? >> shockingly. >> no, this is a problem. right? but the problem we have is that the consensus on the democratic side of the aisl

>> in 1999 we negotiated the wto access package with china. it was dozens of pages of detailed work that had been accomplished on stuff inside china, deeply structural stuff it wasn't just a handful of ag commodity products. >> this is the incredible shrinking deal. >> did it help all the details and then none of them were adhered to. >> the problem wasn't china's wto participation, it was whether we took it seriously you don't do one deal and go away to the beach for two decades and think it's going to continue to be good. >> should we have re-entered this fray? >> the way that it's been done the past three years >> yeah. >> evidently not given where president trump set the bar where he would for sure deliver or no deal at all, we are so far away from that. >> you don't even know if it's a phase 1? >> what does phase 1 mean? after the elections now we're told so earlier on it was unmistakably said if we don't get all the big stuff up front, we're not doing this we're not going to go down this path. >> can we still come back after phase 1 if i

i need to stress larger trade cooperation must be based on wto rules. the united states needs to ensure its ability to provide enough supplies and increase its quality. both china and the united states are market economies and china has a large market. canong as the united states provide the right services and meet demand, to buy more from the united states is something the chinese people will be happy to see. given the large markets and the increasing demand for quality and right priced products, china companies -- countries to compete on a level playing field. our countries will not jeopardize other trading partners' interests. >> i am from reuters. my question is, can china confirm that as part of the first phase agreement china will purchase 50 billion u.s. dollars worth of u.s. agricultural products. also, can china confirm that within the first phase agreement , u.s. tariffs will be reduced by 50%? as such, will china plan on doing the same and reducing it tariffs by 50%? [speaking foreign language] >> thank you for your question. there has been a

a case at the wto we win 90% of the cases. we lose 90% of the case. >> but the bidding process that he explained exemplifies how china on the international stage -- >> needs to be delicate. >> agreed. agreed >> have you seen the horrific cpi fears. have you seen it pass to consumers. >> joe, let me ask you a question. >> have you seen it? >> we'll ask marty we know where you stand. >> marty, you cut him off because he was saying good things he was saying good things, marty, we don't want you here. >> from the very beginning, joe, i said tariffs were likely a disinflationary impulse. >> where are we seeing it mainly in the investment? is that your biggest problem you used to do the market's now down a trillion, it's down 2 trillion now we're up 20% and you stopped talking about the stock market. >> how can i talk about it when you keep cutting me off. >> my favorite thing i've heard is marty saying that wages across the wage earner spectrum, including the fifth quintile are growing 3% plus. >> right >> and hours worked are up t

wto's most critical function as a global trade referee affected shutting down. we are talking about the appellate body lacking judges. have seen global exports falling throughout this entire year. thatf the very few times we've seen such extended losses during a period without recession. amanda: one thing i want to show you as we dive into that subject is u.s. small businesses and their earning index. if you were looking for part of the market that is kind of insulated from export data it would be here. we are seeing signs of optimism here. small business earnings up 10 points. that is a term from what had been happening as recession fears abate. good news on the domestic nontariff related file. front and center this trade deal we call it still the new nafta here. they finally be making its way closer. house democrats planning a vote on that renegotiated agreement. speaker nancy pelosi said the deal was changed to meet their demands. coursee's no question of that this trade agreement is much better than nafta. here iterms of our work is infinitely better than wh

we are not even sure there will be a wto to year. boris johnson wants to diverge from the eu and not create a level playing field. stay tuned. your will be just as much fun as this year. joe: right stuff. thank you very much, heather conley of the center for strategic and international studies. tomorrow, tune in for our special coverage of the u.k. election as soon as the polls close. from new york, this is bloomberg. ♪ joe: hitting pause. the federal reserve leaves rates unchanged and signaling they will keep that through the new year. is it time for further buying? our founder of unison advisors and a contributor to bloomberg opinion. what is your take away? markets reacted positively, not wildly, but some modest gains. the lack ofee did implied hikes and dovish zone from powell give life to investors? >> one of the theories of the last 10 years is that the fed has pumped up asset prices. what is interesting about stock prices, and we can test this because we have 100 years of data. we can run a very simple regression just lookin

the wto body lost its ability to rule on cases, which means president trump can retaliate against american trade partners without fear of retaliation. determinesbody whether members are abiding by the rules of international trade. rulings can affect billions of dollars in commerce. in the last two years, the u.s. has refused to sign off to fill nominees for vacancy on the panel. the term of two more members expired yesterday, which means there are not enough to sign off on wto rulings. the u.s. is the panel has overstepped its mandates. it also says there is an incentive for panel members to string out cases to boost their own pay good that is today's quick take. attention torn our our stock of the hour, whole food supplier united natural foods. shrinking margins have disrupted first-quarter earnings. taylor riggs is here to take a look at the numbers. too cold, i am sorry. taylor: no worries. it has been a tough quarter. a rough few years for the company. if you look at a five-year chart, they are down 90%. 23% alone today. shares were also falling 20%. they did acquire a company called s

if you look at the strategy of the prime minister, will we go back to we get out and wto rules? patrick: that is what his rhetoric will be and i don't think it will be effective. get togethere will in october and november and maybe work something out i then, but i worry it is three quarters of wto, that is where we are going. that will be the soundbites coming out of downing street. it is because you don't have the 11th hour catalyst that brings things together, that is where we go to, just waiting for a q4, maybe some progress. francine: you also have a parliament that will let that happen. do you buy on dips or is that so negative you do not want to touch it? patrick: if something looks incredibly negative you would be buying on the dips, but that is the time it is hardest to do. i think we get an extension or trade deal in december, so buying the dips makes a lot of sense. if there is any exuberance, i don't think there will be a lot selling away those highs. until that 11th hour need, it is hard to see the forecast. francine: what do you do with european equities? patrick: t

even if the next year faces wto atms, it is not ideal and least we know where we stand. about the need for the u.k. to deliver fiscal year. geoffrey: i think the prime during thew -- knew campaign, and given the new seats in the north that he was given, he was expecting a rejuvenation. they are expecting to see signs. i think that is a key part of the equation, but we need to change the narrative. we know where the policy is for continuity, and we have regulations that will focus on the financial side, so let us see on the does -- the connection front what a strong majority can be delivered. guy: he was a fictional character out of a program called "yes minister." and one of my professors say if you want to understand british politics, that is what you watch. let us talk about the bank of england. what do you expect? are you talking about continuity? his understanding of the regulatory side, do you think it will provide the u.k. with more flexibility when it comes with the pushing financial services sector to expand its wings and become a little bit more geoffrey: global

this potential agreement comes basically the same week the wto is shut down, call it that if you will. so how do we talk about enforcement? is the u.s. capable of enforcing a trade deal with china on its own unilaterally, or do we need a unilateral -- multilateral body to oversee this? , it ishe short-term capable of counting what imports in both directions look like, investment, whether ip rights are better enforced by the if you want a sustainable relationship over the long-term where chinese industrial policy is limited and there is a much more level playing field in china in markets around the world, it will require collaboration with other countries, wto, other agreements. starting toust negotiate an e-commerce agreement. for a little while, this can be the u.s., but long-term, everyone will be looking for institutional, large changes. joe: thank you scott kennedy of the center for international studies. , presidenting us now trump has signed off on a trade agreement with china to avert the tariffs set for december 15. we have more next. this is bloomberg. ♪ this is bloomberg.

. -- theals package appellate body upholds or modifies wto rulings, the most important function of the geneva-based trade organization. the u.s. is blocking new appointments to the panel on white house claims the wto has overstepped its mandate and infringes on american sovereignty. as we've been reporting in germany, angela merkel's party is playing hardball. the christian democrats have told the social democrats there'll be no renegotiation of the terms of their alliance and they can quit the governing coalition if they cannot accept that. the social democrats have picked new leaders who say they will demand policy changes. joe biden is trying to breathe new life into his campaign in iowa. it is a place where he struggles despite leading the field and most national polls. joe biden kicked off an eight-day bus tour this weekend. on february 3ses are the first test for the democratic field. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? david: still ahead,

these -- the discrimination and nonnational treatment violate the very basic norms of the wto. let's have a blueprint of how you're going to fix the discrimination with percentage caps on our investment, you don't have on domestic investment, how are you going to protect intellectual property and how are you going to deal with state-owned enterprises, you can have a state-owned enterprise them, singapore has them, even the united states has them but they don't discriminate and get unfair subsidies and i think china would have responded because they could not afford to turn their back on 70% of global gdp. eric: they say they are going to crack down but in every movie and trying to grab every computer technology that we have, you think they can really be trusted? >> well, that's a concern, i think that we need to focus on enforcement and -- and listen to our businesses, you know, regardless of whether you're talking about china or trade in general, the strongest pillar to hold good rules and tell governments what is going on is the business community and so working with the busi

they are getting into the wto has led to this sort of scenario and other places, not just medicine hey look at the situation with rare earth metals. they control the world market on that as well, i am pretty sure. i believe they control assets and minds in this country, because they dump things in the -- for control assets and mines in this country, because they dump rings in the will market, run everybody out of the markets, raise the rates and the price, then they control everything. they do this over and over and have done this 20 years. it is not a mystery. you mentioned lobbying a moment ago. this is one of the big reasons trump got elected. foreign lobbying -- lobbying by foreign countries should be illegal. u.s. lobbying. it is part of the first amendment, or at least it is interpreted that way. but you can ban foreign lobbying. home prices in d.c. were probably become more affordable. lookave to really take a when you have a vice president's son taking a trip on air force two and coming back with a billion-dollar deal. this is not a democrat or republican thing. this is the way

during during the wto has led to the sort of scenario and other places not just medicine obviously look at the situation rare-earth metals, they control the world market and that as well. human assets in mind in this country. the dumplings i'm theun market, beginning something the government helps them produce it. the defendant join marcus run everybody out of business, the raise rates and prices another control everything. rinse and repeat, then you do it over and over again. it's not aon mystery. you mentioned lobbying a moment ago. this is one of the big reasons tom got elected. for lobbyists should be illegal. you can't bannn u.s. lobbying as part of the first amendment. releases interpreted that way buchanan foreign lobbying. men believe me i'm prices in dc would become much more affordable. you can really take those serious look at we do have a vice president son taking a trip unenforced to, hung i'm with the dealal with today's later a big deal. this isn't just a democratic thing has brought a republican thing is the wayl. the world works. this way for hundreds of years and wered