1 MONGOLIA-CHINA AGREE TO COLLABORATE IN INCREASING MEAT EXPORT WWW.MONTSAME.MN PUBLISHED:2018/09/21      2 U.S. AND MONGOLIA SEEK TO STRENGTHEN ECONOMIC RELATIONSHIP WWW.STRTRADE.COM PUBLISHED:2018/09/21      3 MONGOLIA, U.S. LEADERS DISCUSS BILATERAL TIES WWW.XINHUANET.COM PUBLISHED:2018/09/21      4 BELT AND ROAD SIGNIFICANT TO MONGOLIA, PEOPLE AROUND WORLD -- ACADEMIC WWW.ENG.YIDAIYILU.GOV.CN PUBLISHED:2018/09/21      5 PETRO MATAD UPDATES MONGOLIA EXPLORATION WWW.OGJ.COM PUBLISHED:2018/09/21      6 RIO TINTO’S EXIT FROM COAL PAYS OFF, TO RETURN $3.2B FROM SALES PROCEEDS TO SHAREHOLDERS WWW.MINING.COM PUBLISHED:2018/09/21      7 OPENING CEREMONY OF SAINSHAND SALKHIN PARK HELD WWW.MONTSAME.MN PUBLISHED:2018/09/21      8 ALIBABA’S MA SAYS TRUMP’S TRADE WAR ‘DESTROYED’ HIS PROMISE TO CREATE JOBS FOR 1MN AMERICANS WWW.RT.COM  PUBLISHED:2018/09/21      9 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      10 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      НУРАХ ДӨХСӨН БАЙРУУДЫГ ШИНЭЧЛЭХ КОМПАНИ ОЛДОХГҮЙ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛС ВАШИНГТОН, ПЁНЬЯНЫ ХЭЛЭЛЦЭЭРТ ЗУУЧЛАХАД БЭЛЭН ГЭДГЭЭ ЗАРЛАЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УЛСЫН ХЭМЖЭЭНД 85.3 МЯНГАН ТОНН ТӨМС ХУРААН АВААД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/21     ЗГ: БУЦАЛТГҮЙ ТУСЛАМЖИЙГ УСНЫ НӨӨЦИЙГ САЙЖРУУЛАХ, ХЭРЭГЛЭСЭН УСЫГ БУЦААН АШИГЛАХАД ЗАРЦУУЛНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     ҮСХ: УЛААНБААТАРТ АЖИЛЛАГЧДЫН САРЫН ДУНДАЖ ЦАЛИН УЛСЫН ДУНДЖААС 121.7 МЯНГАН ТӨГРӨГӨӨР ИХ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛСЫН ИХ ХУРАЛ, ЕВРОПЫН ПАРЛАМЕНТ ХООРОНДЫН XII УУЛЗАЛТААР ХАМТАРСАН МЭДЭГДЭЛ ГАРГАЛАА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/21     ТӨРИЙН АЛБАНЫ УДИРДАХ АЖИЛТНЫ УЛСЫН ЗӨВЛӨГӨӨН БОЛЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/09/21     2019 ОНЫГ МОНГОЛ, АМЕРИКИЙН ЗАЛУУЧУУДЫН ЖИЛ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УУРХАЙЧДЫН АЖЛЫН БАЙР НЭМЭГДЭЖ, ЦАЛИН ӨСЧ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/20     “ЭРДЭНЭТ”-ИЙН 49 ХУВИЙН ӨМЧЛӨЛ ТОЙРСОН ХУУЛЬ ЗҮЙН МАРГААН ЭЦЭС БОЛЛОО WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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John Lewis posts record £200m sales week thanks to Black Friday www.theguardian.com

The growing importance of Black Friday for UK retailers has been underlined by the latest sales figures, with John Lewis reporting its best ever weekly revenues of nearly £200m. The department store group said it achieved sales of £199.8m in the week to last Friday, up 6.5% on the same week last year. It traded well in shops and online, with shops becoming busier at the weekend.
 
UK shoppers spent over £2bn on their Visa cards on Black Friday, 13% more than last year. Half the spending happened online and contactless payments picked up, across all age groups, the card company said.
 
Kevin Jenkins, UK and Ireland managing director at Visa, said: “We continue to see an increase in the shift from cash to cards when people do their Christmas shopping. Consumers are now armed with a variety of new ways to pay, such as wearables and a range of digital wallet options on their mobile devices.”
 
Barclaycard, which processes almost half of all credit and debit card transactions in the UK, said payment transactions were 6% higher than last year’s Black Friday. Total spending amounted to £2.9bn, although this also includes purchases not related to Black Friday.
 
Many UK retailers now discount heavily in the days running up to Black Friday and Cyber Monday, and over the weekend in between, extending the period in which bargain hunters can seek discount offers. Some retailers stretch their sales into a longer period, with Amazon and some supermarkets kicking off Black Friday deals about 10 days before.
 
However, this year did not bring the scenes of mayhem at shops seen in 2014, when police had to intervene in some places. Since the US-inspired shopping bonanza arrived in the UK six years ago, it has increasingly become an online event.
 
“The question is how far it’s pulled sales forward from this week and December,” said Nick Bubb, an independent retail analyst. “It’s a big week, bigger than Christmas. The full story isn’t yet told. That’s going to be the question for all retailers.”
 
Industry figures from consultancy Springboard showed that online purchases rose 6.7% this Black Friday compared with last year, well short of the expected double-digit surge of 25%.
 
Footfall at shops rose unexpectedly, by 2%. However, there was a dip in trips to retail parks and shopping centres between Friday and Sunday, according to Springboard. Pictures of empty Tesco superstores and shopping malls appear to confirm that trend.
 
In the US, Cyber Monday was the country’s biggest ever online shopping day, with $3.39bn spent online this year, up 10.2% on 2015, according to data from Adobe Digital Insights. Cyber Monday narrowly beat Black Friday, with takings of $3.34bn. Televisions saw the biggest discounts, of 20% plus.
 
John Lewis said customers used their mobile phones to shop between midnight and 9am on Black Friday, but switched to shopping on their desktop computers once they arrived at work. At the busiest time on Friday morning, five orders were made every second on the John Lewis website.
 
As elsewhere, electrical items were the biggest draw at John Lewis, with sales up 11% year on year. Bestsellers included Sonos Play:1 wireless speakers and GHD hair straighteners, Samsung TVs and KitchenAid appliances.
 
Fashion sales were 4.6% higher. Sales were particularly strong in beauty, womenswear, menswear and sports. Ted Baker and Michael Kors accessories were popular, along with Barbour clothing and Calvin Klein pyjamas and lingerie. But the home department offered fewer deals on branded items and sales edged up just 0.9%.
 
The group’s Waitrose supermarket business made sales of £136.6m last week, up 1.3%. Beer, wine and spirits were the biggest sellers, with sales up 4.5% as people stocked up for the festive season. Turkey orders were almost a third higher than last year as Thanksgiving becomes more popular in the UK, and Waitrose also sold a third more pumpkin pie pastry cases.
 
At Argos, popular products included iPads, PS4, Xbox, Dyson vacuum cleaners and Beats headphones. Football clubs including Premier League champions Leicester City embraced Black Friday, with many offering 20% off kit and other merchandise in their shops and online.
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Oil prices drop ahead of Opec meeting www.bbc.com

The price of benchmark crude oil has fallen almost 4% as traders question whether Opec can agree on a deal to limit production.
In September the oil exporting cartel members voted for the first production cut in eight years.
Details of the agreement are due to be finalised at a formal Opec meeting in Vienna on Wednesday.
But key Opec members appear to disagree over the plan and some analysts believe the meeting may not produce a deal.
Indonesian Energy Minister Ignasius Jonan said he was not sure Opec would manage to forge an agreement: "I don't know. Let's see. The feeling today is mixed."
Brent crude oil was down $1.76 per barrel at $46.48, and US crude was down $1.80 at $45.28.
Analysts at Barclays said: "Volatility is set to be high in the oil market in the days ahead."
Blocked
In-depth negotiations will be needed on Wednesday to cement a deal, Goldman Sachs analysts said.
"The latest headlines suggest that while there is a broad agreement on the rationale for a cut, political considerations and country level quota negotiations are so far preventing a deal from being reached," Goldman Sachs said.
In September Opec pledged to limit production by about 700,000 barrels a day, although Iran was being allowed to increase production.
Disagreements between Iran and its regional rival, Saudi Arabia, had blocked earlier attempts to reach a deal.
Many of Opec's smaller members wanted limits after oil prices fell from $110 a barrel over the past two years after oversupply and slowing demand.
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Boeing becomes latest casualty of EU-US trade spat www.rt.com

The World Trade Organization (WTO) has ruled special tax exemption granted for the production of Boeing’s newest long-haul jetliner contravenes international trade rules.
 
The tax exemption was the central part of a case the EU filed with the trade organization against the US in December 2014.
 
Under the ruling the US should withdraw the subsidy within 90 days, it can also appeal.
 
The tax cut was provided by the state of Washington in 2013 to ensure the wings for Boeing's 777X widebody plane were made only there. The plane can seat more than 400 passengers and is an updated model of the 777. It is due to enter service at the end of the decade.
 
The WTO said giving Boeing the special and very low business and occupation (B&O) tax rate was unlawful because it required the company to use local rather than imported materials which distort trade.
 
"The Panel has found that the European Union has demonstrated that the B&O aerospace tax rate for the manufacturing or sale of commercial airplanes under the 777X program... is a subsidy contingent upon the use of domestic over imported goods [and is] prohibited," said the WTO in its ruling.
 
“We expect the US to respect the rules, uphold fair competition, and withdraw these subsidies without any delay,” said EU Trade Commissioner Cecilia Malmstrom as cited by the Wall Street Journal.
 
The EU suggested Boeing had received $8.7 billion in subsidies. Boeing denied the accusations, saying they totaled just $50 million.
 
In September, the WTO determined the EU had failed to properly remove subsidies granted to Airbus. Next year the trade body is expected to pass a similar judgment on the US.
 
The transatlantic trade spat between Boeing and its European rival Airbus dates back more than a decade with the sides accusing each other of receiving billions of dollars in illegal government aid.
 
Their previous disagreement was settled in 1992. However, the US walked away from that deal in 2004, claiming Airbus had an unfair advantage.
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Mongolia and Russia to collaborate on protection of snow leopards and bighorns www.montsame.mn

Ulaanbaatar /MONTSAME/ The sixth meeting of the Mongolia-Russia joint committee on Cooperation in Environmental Protection took place in Moscow on November 24 and 25.
 
The Mongolian part was led by the state secretary of the Ministry of Environment and Tourism, Ts.Tsengel, Ambassador of Mongolia to the Russian Federation B.Delgermaa and the Russian part ny Deputy Director of Russian Federal Service for Supervision of Natural Resource Usage Amirkhan M.Amirkhanov.
 
The sides discussed about conservation and protection of migratory species inhabiting the transboundary areas, cooperation in forestry and development of specially protected areas system, as well as implementation of projects reflected in the Programme on Establishing Economic Corridor between Mongolia, Russia and China, and arranged to take certain measures.
 
The results of researches on the environmental impacts on Baikal lake ecosystem of certain hydropower plant projects, planned to be implemented in Mongolia, were presented. After this, the sides agreed to sum up positions and researches of scholars from both countries while emphasizing an importance of imformation sharing.
 
The commission underlined achievements reached in implementation of the Agreement on Prevention from Forest Fires between the Government of Mongolia and the Government of the Russian Federation, and concerted on the necessity to focus on allowing smooth crossing the state borders for emergency workers, fighting the crossborder forest fires. The sides agreed on renewing the 1995 Cooperation agreement on Forestry.
 
Also, the commission resolved to sign an Intergovernmental agreement on establishing a specially protected crossborder areas of Khuvsgul-Tunkhen and Siilkhem, and to organize a workshop meeting of researchers and specialists on monitoring and control of the transboundary migratory animals, in specific, wild mountain sheep (argali) and snow leopards.
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OECD calls for better using expansionary fiscal initiatives to escape low-growth gap www.xinhuanet.com.cn

PARIS, Nov. 28 (Xinhua) -- The Organization for Economic Cooperation and Development (OECD) called for Monday better using expansionary fiscal initiatives and maintaining trade openness to push the global economy out of today's low-growth trap.
 
"In light of the current context of low interest rates, policymakers have a unique window of opportunity to make more active use of fiscal levers to boost growth and reduce inequality without compromising debt levels," Secretary-General of OECD Angel Gurria said Monday, while launching the latest version of report named "Global Economic Outlook", adding that "we urge them to do so."
 
The OECD said in the report that the ongoing or projected shift in the fiscal stance in a number of major economies including the United States, accounts for much of the modest increase in global growth to 3.3 percent in 2017 and 3.6 percent in 2018.
 
But "this is not a blank cheque for governments," Gurria said, noting that "the OECD is calling for fiscal policy to be used more wisely, with spending targeted at areas that boost growth, like high-quality infrastructure investment, innovation, education and skills, which also make growth more inclusive."
 
In the report, the OECD also identified a number of financial risks where exchange rate and capital flow volatility coupled with pricing distortions are exposing the vulnerability of corporate balance sheets, particularly in emerging markets, and challenging bank profitability and the long-term stability of pension schemes in advanced economies.
 
The international organization also said that an increase in protectionism could risk impairing already weak growth in global trade.
 
It called in the report on governments to avoid protectionist policies and encourages them instead to implement structural policy packages that create more job opportunities, increase business dynamism and promote successful reallocation, ensuring that the gains from trade are better shared by all.
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Trump faces dilemma as U.S. oil reels from record biofuels targets www.reuters.com

The Obama administration signed its final plan for renewable fuel use in the United States last week, leaving an oil industry reeling from the most aggressive biofuel targets yet as President-elect Donald Trump takes over.
 
The Renewable Fuel Standard (RFS) program, signed into law by President George W. Bush, is one of the country's most controversial energy policies. It requires energy firms to blend ethanol and biodiesel into gasoline and diesel.
 
The policy was designed to cut greenhouse gas emissions, reduce U.S. reliance on oil imports and boost rural economies that provide the crops for biofuels.
 
It has pitted two of Trump's support bases against each other: Big Oil and Big Corn. The farming sector has lobbied hard for the maximum biofuel volumes laid out in the law to be blended into gasoline motor fuels, while the oil industry argues that the program creates additional costs.
 
Balancing oil and farm interests is likely to prove a challenge for Trump, who has promised to curtail regulations on the oil industry but is already being reminded by biofuels advocates of the importance of the program to the American Midwest, where he received strong support from voters on Nov. 8.
 
Oil groups are renewing their calls to change or repeal the program following Wednesday's announcement, when the Environmental Protection Agency (EPA) set record mandates for renewable fuels - for the first time hitting levels targeted by Congress nearly a decade ago..
 
The EPA plan is "completely detached from market realities and confirms once again that Congress must take immediate action to remedy this broken program," said Chet Thompson, President of the American Fuel and Petrochemical Manufacturers, in a statement.
 
It is unclear what Trump's plans for the program will be and his transition team did not respond to Reuters' requests for comment.
 
Both camps are expecting an administration receptive to their demands, though both have expressed concern and uncertainty over Trump's plans for the program, according to experts, industry and political sources.
 
The installation of climate change skeptic Myron Ebell as head of the transition at the EPA bolstered oil industry confidence Trump will swing their way. In September, Trump appeared to briefly echo the views of his supporter, billionaire Carl Icahn, who expressed concern about the program.
 
Icahn, who owns a stake in an oil refiner, renewed those criticisms last week, saying the ethanol credit market generated by the program is susceptible to manipulation and harming independent refiners.
 
PRO-ETHANOL CAMPAIGNING
 
The president-elect campaigned on a pro-ethanol platform when he visited America's farm states and biofuels advocates expect he will keep the RFS strong, maintaining annual targets at the minimum set forth by Congress.
 
"Mr. Trump will not turn his back on the American heartland, we believe in him," said Annette Sweeney, a former state representative from Iowa who was a member of the Trump's agricultural advisory committee during his candidacy.
 
"To a certain extent, we are on higher ground. You always want to be on higher ground," said Bob Dinneen, head of the Renewable Fuels Association, referring to the increase.
 
"We’ll be able to demonstrate the marketplace can absorb 15 billion gallons of ethanol. We can put this all behind us. As we look to 2018... there's no reason to go back," he said.
 
The renewables industries have already started to emphasize their place among American-made fuels, something experts expect will appeal to Trump.
 
"There are a lot of good things to be said about second-generation fuels, even from the new administration’s perspective," said Harvard University professor and former Obama administration advisor James Stock.
 
"All the new administration needs to do is embrace the original ... vision of the RFS," he said.
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Baidu maps out global expansion www.chinadaily.com.cn

Baidu Map, a desktop and mobile map service provided by China's online search giant Baidu Inc, is set to become a world mapping service provider covering more than 150 countries and regions.
 
On Wednesday, the company will launch its map services for more countries and regions. The new map services will cover countries in Asia, Europe, Africa, North America, South America and Oceania, and provide services for 99 percent of the world population.
 
"This signals that we will finally transform from a Chinese map provider to a world map provider and become the Chinese brand that provides global services for mobile travel applications," said Li Dongmin, general manager of Baidu Map.
 
Currently, Baidu Map claims that it accounts for about 70 percent of domestic market share, with more than 300 million active monthly users and about 100 million car owners using its mapping service, according to the company.
 
At the beginning of the year, Baidu Map initiated its internationalization strategies and has been expanding rapidly globally.
 
On Monday, Baidu Map started strategic cooperation with the tourist administrations of four northern European countries-Denmark, Finland, Norway and Sweden. The two sides will exchange data, share resources, and jointly develop more events to improve the traveling experiences of Chinese visitors.
 
"The cooperation signals a further step forward in the localization of Baidu Map in the course of its internationalization, following our cooperation with the tourist administrations of South Korea and Thailand," Li said.
 
In the first half of 2016, Chinese people made 59.03 million trips abroad, up 4.3 percent year-on-year, according to the China National Tourism Administration.
 
Baidu Map said it has covered 25 percent of Chinese outbound tourists, and, by 2020, it aims that overseas users will account for half of its total users.
 
"We will strengthen in-depth cooperation with overseas governments and leading enterprises and choose some key countries to provide mapping services in local languages and increase our local impact," Li said.
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Mongolian FM Signs Book of Condolences on Fidel Castro's Demise www.en.montsame.mn

Ulaanbaatar /MONTSAME/ The Minister of Foreign Affairs of Mongolia, Mr Ts Munkh-Orgil, visited the Cuban Embassy in Ulaanbaatar, to sign the book of condolences, on the demise of historic leader of the Cuban Revolution, Commander in Chief Fidel Castro Ruz. Accompanying the FM, were Damdin Gansukh, Director of the Department of America, Middle East and Africa, Enkhbold Odmunkh, deputy Director of Protocol of the Foreign Ministry.
 
Cuban ambassador, Raul Delgado Concepción, thanked the Foreign Minister who also transmitted the condolences of the Spokesperson of the Mongolian Parliament (Great Hural) the gesture of visiting the diplomatic see to express condolences in the name of the government on occasion of the passing of the leader of the Cuban Revolution and great Cuban revolutionary.
The Minister recalled the valuable contribution of Commander in Chief Fidel Castro who started the friendly relationship between Mongolia and Cuba and strengthened the development of that relation, reports Prensa Latina.
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SEC said to be probing Rio Mozambique coal deal www.mining.com

The US Securities and Exchange Commission is investigating a massive writedown booked by world number two miner Rio Tinto on a coal deal in Mozambique according to news reports.
 
Rio Tinto acquired the Benga mine and other coal projects in the Southern African country’s Tete province in 2011, after buying Australia's Riversdale Mining for $3.7 billion.
 
But in 2013 the Anglo-Australian giant took an asset impairment charge of $3 billion on the coking coal venture citing challenges in building the necessary infrastructure to bring the project on stream.
 
Bloomberg reports the charge, part of a wider $14 billion in asset writedowns, led to the departure of then CEO Tom Albanese.
 
A year later Melbourne-based Rio sold the assets to an Indian company for just $50 million.
 
Mozambique's central Tete province is believed to hold one of the world's largest untapped coal reserves that has been compared with Australia's coal-rich Bowen Basin.
 
As part of a separate investigation, Rio this month fired two top executives in relation to a bribery case at its recently sold Simandou iron ore project in Guinea, West Africa.
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Protectionism and trade disputes threaten world growth, says OECD www.theguardian.com

A new wave of protectionism and trade tensions risks denting global growth, stoking inflation and harming living standards, the west’s leading economic thinktank has warned in its first in-depth forecasts since Donald Trump won the US election on an anti-globalisation platform.
 
The Paris-based Organisation for Economic Co-operation and Development (OECD) said it was optimistic that expected spending measures and tax cuts under the new US administration would boost growth there and in other countries. But it said global trade growth was already “exceptionally weak” and jobs would suffer if politicians rolled back the clock on trade liberalisation.
 
The thinktank warned of an uncertain outlook for the UK and its trading partners as Brexit negotiations began. It nudged up its forecasts for UK growth next year but still predicted the weakest performance since the recession and a further slowdown in 2018.
 
The OECD used its quarterly forecasts to urge governments to use low borrowing costs to invest and enact structural reforms. The group reprised a warning to politicians not to over-rely on central banks to drive the recovery with monetary policies, such as low interest rates and electronic money-printing programmes.
 
It forecast that, after averaging 3.9% growth over the decade to 2013, global growth would be 2.9% this year then edge up to 3.3% in 2017 and 3.6% in 2018.
 
“Almost a decade after the outbreak of the financial crisis, the global economy remains in a low-growth trap with weak investment, trade, productivity and wage growth and rising inequality in some countries,” said Catherine Mann, the OECD’s chief economist.
 
“Monetary policy is overburdened, leading to growing financial risks and distortions. Alongside structural reforms, a stronger fiscal policy response is needed to boost near-term growth and strengthen long-term prospects for inclusive growth.”
 
The OECD said global trade growth had collapsed and the prospects of only a modest recovery over coming years suggested globalisation “may now be close to stalling”.
 
The report did not specifically name Trump or any other politicians around the world who have tapped into disillusionment over the spoils of globalisation appearing to be unfairly distributed. But it did warn generally on the potential perils of protectionism.
 
OECD researchers analysed global growth prospects under different trade conditions and forecast a significant blow from rolling back the trade liberalisation seen over the last 15 years.
 
“The global loss in GDP would be about 1.3%, but for the countries that impose the restriction, in other words, the US, China and the EU, the loss in their GDP would be closer to 2%,” said Mann.
 
“The countries that impose the restrictions damage themselves more.”
 
The report noted that more than 25% of jobs depend on foreign demand in many of the 35 countries in the OECD group.
 
“This economic outlook suggests that protectionism and inevitable trade retaliation would offset much of the effects of the fiscal initiatives on domestic and global growth, raise prices, harm living standards, and leave countries in a worsened fiscal position.
 
“Trade protectionism shelters some jobs, but worsens prospects and lowers wellbeing for many others,” the report said.
 
The warning comes days after the US president-elect announced his intention to pull out of the Trans-Pacific Partnership trade deal.
 
Mann said the solution for countries like the US, where voters have voiced their frustration at how globalisation has apparently weighed on wages and job creation, was to use domestic policies to ensure the gains from trade were shared better.
 
“What we know about trade is it expands the pie. Now the problem with trade has been the distribution of the gains from trade and this has always been known … and the fabric of domestic policies has not addressed that,” she said.
 
On the tax and spending side, the OECD’s forecasters said they expected stimulus measures from the US government would raise US GDP growth by around 0.4 percentage points in 2017 and around 0.8 percentage points in 2018. US growth was expected to pick up next year and quicken again in 2018.
 
At its last forecasts in September, the OECD backtracked on its earlier warning that the UK would suffer instant damage from the Brexit vote. In this new outlook, the thinktank forecast UK GDP would have grown 2.0% this year, a touch higher than the 1.8% it predicted in September.
 
The forecast for next year was lifted to 1.2% from 1% in September. But that would still be the weakest growth since the depths of the global financial crisis in 2009 and is slower than the 1.4% forecast by the Bank of England and the government’s fiscal watchdog, the Office for Budget Responsibility.
 
An OECD forecast for 2018 showed economic growth slowing to just 1% and the thinktank warned of higher inflation on the back of a weaker pound.
 
It noted Philip Hammond’s move in last week’s autumn statement to abandon the strict borrowing rules of his predecessor, George Osborne, but urged the chancellor to go further. “A more significant increase in public investment would support demand in the near term and boost supply in the longer term.”
 
The thinktank also urged “caution” from the government over plans to raise the “national living wage” over coming years, warning it could backfire and hurt workers by increasing unemployment.
 
“The effects on employment need to be carefully assessed before any further increases are adopted, especially as growth slows and labour markets weaken.”
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