07.10.2022

United States approves Disney acquisition of Fox

The U.S. Department of Justice has approved the acquisition of 21st Century Fox by the Walt Disney conglomerate.

In a press release, the US Department of Justice notes that the condition for approval of the transaction is the sale by Disney of Fox Sports Regional Networks. Disney will have at least 90 days to close these assets to sell these assets.

The Vesti.Ekonomika portal reported that on June 20 the world’s largest media conglomerate, the Walt Disney Company, and the 21st Century Fox media holding reached an agreement to acquire the bulk of Fox’s assets for $ 71.3 billion.

The companies agreed after Walt Disney raised its offer to purchase 21st Century Fox by $ 10 per share compared to its previous offer, also exceeding Comcast’s media offering to buy Fox by $ 3 per share.

EU countries promise to respond to new US tariffs

European Union leaders have vowed to respond decisively to the protectionism of US President Donald Trump, signaling readiness for retaliatory measures if the United States escalates the trade war and imposes tariffs on cars, Bloomberg reports.

EU authorities have repeatedly criticized US steel tariffs and expressed support for the response to Trump’s actions. Last week, the EU responded by setting similar tariffs on US goods totaling EUR 2.8 billion ($ 3.2 billion).

Trump also threatens to use national security as the main argument for imposing tariffs on imports of cars and parts from the EU. This measure can affect all EU countries more than steel and metal tariffs.

As Vesti.Ekonomika wrote, the application by the Trump administration of 25% duties on cars and components of foreign manufacture will lead to noticeable negative consequences for automobile companies around the world, including in the USA.

This was announced in a press release to the report assessing the potential consequences of the introduction of the fee at Moody’s Investors Service.

As noted, the implementation of Trump’s threats will have negative consequences for the credit rating of most automakers. In particular, American corporations GM and Ford will suffer due to duties because of their dependence on imports of assembled cars in Mexico and Canada. According to Moody’s, foreign production accounts for 30% of total GM car sales; for Ford, the share of foreign assembly in sales is 20%.

Canada will apply retaliatory duties to the US for $ 12.6 billion

Canadian authorities have announced the application of reciprocal import duties on US goods starting July 1.

A statement by the Canadian Foreign Ministry notes that the government is introducing “moderate and proportional measures” in response to US duties on Canadian steel and aluminum in the amount of 16.6 billion Canadian dollars ($ 12.63 billion) for steel, aluminum and other products from the United States starting from July 1, 2018

The published list lists US products for which import duties of 25% and 10% are imposed. In addition to various types of industrial steel and aluminum products, Canada also imposes import duties on food products manufactured in the United States, in particular whiskey, yogurt, coffee, chocolate, as well as a number of other items.

According to the Canadian authorities, they also provide subsidies in the amount of 2 billion Canadian dollars ($ 1.52 billion) “to protect the interests of Canadian workers and companies in the metallurgical segment of steel and aluminum, as well as industry.”

The US is preparing a bill that ignores WTO rules

US Presidential Administration Donald Trump has developed a bill that allows the White House to unilaterally raise tariffs without agreement with Congress, Axios portal said.

The adoption of the bill will mean that the world’s largest economy will abandon the rules of the World Trade Organization (WTO).

The document, called the United States Fair and Mutually Beneficial Tariff Act, ignores the fundamental principles of the WTO, notes Axios, who had the bill in his possession.

These principles include a ban on states setting different tariff rates for countries not participating in free trade agreements, and setting tariff limits agreed upon by WTO countries.

According to an Axios source familiar with the situation, if the bill is passed, “it would be tantamount to moving away from the WTO and our obligations there without actually notifying us of our withdrawal.” However, the source noted that the congress will never take such a measure.

White House spokeswoman Lindsay Walters told Axios that work on the bill is still far from complete.

According to Vesti.Ekonomika, Axios sources said last week that Trump has repeatedly told senior officials from his administration that he wants to pull the United States out of the World Trade Organization.

According to the source of the publication, who participated in the discussion of this issue with Trump, the president told his advisers that he did not know why the United States was in the WTO, and, in his opinion, the organization was created by other countries to interfere with the United States.

Trump also criticized the WTO during his campaign.

Leave a Reply

Your email address will not be published.