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Renault sales slide in Europe, rise worldwide

French automaker Renault reported that first-half vehicle sales fell 7.4 percent in Europe but it expected record sales worldwide thanks to booming emerging markets, it said on Monday.

International sales rose 1.9 percent to 1.37 million vehicles for the first half of the year, the company said in an earnings statement. In Europe sales fell 7.4 percent to 831,700 units, with a 9.9 percent fall in France.

The company said it was hoping to sell more than 2.6 million vehicles, a record, over the whole of 2011, as its international sales improved, diverging from its weaker performance in France and throughout Europe.

Outside Europe, sales grew by a fifth to 542,000 vehicles in the first half of 2011 and accounted for 40 percent of the group’s total sales.

“Despite mixed results in Europe, the group continued to grow sales, setting a record for first-half sales,” executive vice-president Jerome Stoll said in an earnings statement.

“This performance was based as expected on strong international growth (outside Europe), with an increase of more than 20 percent, thanks notably to two key countries for the group, Brazil and Russia.”

It said it also performed well in Iran, with sales up 70 percent and a 4.7 percent share of the market, thanks to its Logan and Megane brands.

Another key target for Renault is India, where it launched its Fluence model this year and plans five more models this year and next, including its low-cost four-wheel drive “Duster” vehicle built by its subsidiary Dacia.

Stoll told a news conference on Monday that the group aims to “prioritise big emerging countries with prospects for growth.”

Renault is due to launch three electric vehicle models this year: the Fluence, Kangoo and Twizy.

Sales of Renaults and Dacias suffered in France owing partly to the ending of a government bonus schemed for trading in old vehicles and also to low stock levels which struggled to keep up with demand.

“We lacked stocks, we lacked cars. We did not lack customers,” said Stoll.

Renault is France’s second-biggest car maker after CSA Peugeot Citroen.

Stoll said Renault hoped for worldwide sales of three million vehicles a year or more in 2013.

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FARMING

WTO rules US tariffs on Spanish olives breach rules

A US decision to slap steep import duties on Spanish olives over claims they benefited from subsidies constituted a violation of international trade rules, the World Trade Organisation ruled Friday.

WTO rules US tariffs on Spanish olives breach rules
Farmers had just begun harvesting olives in southern Spain when former US President Donald Trump soured the mood with the tariffs' announcement. Photo: Jorge Guerrero/AFP

Former US president Donald Trump’s administration slapped extra tariffs on Spain’s iconic agricultural export in 2018, considering their olives were subsidised and being dumped on the US market at prices below their real value.

The combined rates of the anti-subsidy and anti-dumping duties go as high as 44 percent.

The European Commission, which handles trade policy for the 27 EU states, said the move was unacceptable and turned to the WTO, where a panel of experts was appointed to examine the case.

In Friday’s ruling, the WTO panel agreed with the EU’s argument that the anti-subsidy duties were illegal.

But it did not support its stance that the US anti-dumping duties violated international trade rules.

The panel said it “recommended that the United States bring its measures into conformity with its obligations”.

EU trade commissioner Valdis Dombrovskis hailed the ruling, pointing out that the US duties “severely hit Spanish olive producers.”

Demonstrators take part in a 2019 protest in Madrid, called by the olive sector
Demonstrators take part in a 2019 protest in Madrid called by the olive sector to denounce low prices of olive oil and the 25 percent tariff that Spanish olives and olive oil faced in the United States. (Photo by PIERRE-PHILIPPE MARCOU / AFP)
 

“We now expect the US to take the appropriate steps to implement the WTO ruling, so that exports of ripe olives from Spain to the US can resume under normal conditions,” he said.

The European Commission charges that Spain’s exports of ripe olives to the United States, which previously raked in €67 million ($75.6 million) annually, have shrunk by nearly 60 percent since the duties were imposed.

The office of the US Trade Representative in Washington did not immediately comment on the ruling.

According to WTO rules, the parties have 60 days to file for an appeal.

If the United States does file an appeal though, it would basically amount to a veto of the ruling.

That is because the WTO Appellate Body — also known as the supreme court of world trade — stopped functioning in late 2019 after Washington blocked the appointment of new judges.

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