News about the OECD

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OECD WARNS OF TARIFF WAR RISKS TO THE GLOBAL ECONOMY



The Secretary-General of the OECD has inform that an increase in trade tensions between the US and China could deepen the global economy´s slowdown by up to an additional percentage point by 2020.

Trump´s office has established additional tariffs to imported chinese products worth $250 billion. as a respond to what is considered as unfair trade practices from Beijing.

The OECD reduced this month´s global growth estimate to 3.5 percent for next year and the same rate for 2020. But the burden of activity could be greater if the trade war between the world´s two largest economies grows.

According to Wall Street Journal, the United States and China are exploring a possible agreement by which Washington could suspend the imposition of more tariffs until the spring of 2019 in exchange for reforms in Beijing's economic policy.

                                                                                                                                                                   

OECD: THE EUROPEAN SYSTEM OF CO2 QUOTAS DOES NOT HARM BUSINESSES

The European system of exchange of carbon dioxide quotas does not harm companies’ competitivity with respect of other regions where this emission-control system is not operating, assures the Organisation for the Economic Cooperation and Development.
In a review, published Dec 7th, 2018, the OECD has pointed out that this system has encouraged companies to invest in more environmentally-efficient technology, and, as consequence, reduced emissions. 

The authors of the review have compared the results obtained in 2005 and 2014 by the 2000 companies with facilities suppressed by this system and their conclusion has been that there is not a negative effect for employment, income, profits and value of the assets.

On the other hand, they affirm that their economic situation has improved with respect to others with whom they compete and are not suppressed by this supervision regime.

Their income was in 2014 between a 7 and a 18% higher than if the emission-control system was not applied.

For the OECD, “the system of exchange of quotas does not obstruct the competitivity of the European industry facing regions with less strict regulations concerning emissions”. 

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