Japan urges US to shun steel tariffs but makes no threats

Japan Minister of Economy, Trade and Industry Hiroshige Seko said: ‘High quality steel and aluminum exports from ally Japan are not at all affecting US national security but rather are contributing to US employment and the economy.’ (AP Photo)
Updated 06 March 2018
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Japan urges US to shun steel tariffs but makes no threats

TOKYO: Japan on Tuesday stuck to its a low-key approach to threatened US tariffs on steel and aluminum, reflecting a desire to keep trade fights from hurting security ties as well as lessons learned about how to deal with President Donald Trump.
The spectre of a trade war coincides with signs of a thaw in a crisis over North Korea’s nuclear and missile threat, prompting concerns in Tokyo that talks between Pyongyang and Washington could take place despite Japan’s stance that the focus should be on putting increased pressure on Pyongyang.
Minister of Economy, Trade and Industry Hiroshige Seko on Tuesday repeated that Japanese steel and aluminum exports are not affecting America’s national security but are helping America’s economy. He declined comment on possible retaliation.
“High quality steel and aluminum exports from (US) ally Japan are not at all affecting US national security but rather are contributing to US employment and the economy,” Seko told a news conference.
US President Donald Trump last week proposed tariffs of 25 percent on steel and 10 percent on aluminum. That prompted Canada, Mexico and the European Union to threaten counter-steps if the plan, based on Section 232 of a 1962 US law that allows such tariffs based on “national security,” went ahead.
Peter Navarro, director of the White House National Trade Council, said countries will not be excluded from the tariffs but there will be a mechanism for some corporate exemptions, raising hopes some Japanese products will be exempted.
Any steps Japan does take in response to US tariffs would be consistent with rules of the World Trade Organization (WTO), said a Japanese government source, who declined to be identified because he was not authorized to speak to media.
“We wouldn’t stand idly by, but ... if we did the same thing as the United States by taking steps that are against WTO rules, that would be like a children’s spat.”
Japanese Prime Minister Shinzo Abe, who has forged close ties with Trump, is wary of confrontation over trade since keeping Tokyo and Washington on the same page on North Korea is a top priority, experts said.
“The security issue looms much larger now. I don’t think they want to set off Trump,” said Jeffrey Kingston, director of Asian studies at Temple University’s Japan campus. “You don’t get what you want by getting in his face, but by making it seem he’s getting a better deal,” he added.
Also on Tuesday, Abe spoke by phone about the tariffs and other matters with Canadian Prime Minister Justin Trudeau and Australian Prime Minister Malcolm Turnbull, Japan’s foreign ministry said.
All three countries belong to an 11-member Asia-Pacific trade pact to be signed on Chile on March 8. Japan took the lead in forging the deal after Trump pulled the United States out of a 12-nation predecessor, the Trans-Pacific Partnership.
Seko is arranging a visit to China this month and the proposed US tariffs would come up then, Jiji news agency said. A ministry official was not immediately available to comment on the report.


‘Fuel of the future’ comes of age as Aramco opens first hydrogen filling station

Updated 17 June 2019
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‘Fuel of the future’ comes of age as Aramco opens first hydrogen filling station

  • Fatih Birol’s comments were a deliberate poke at those experts who think that the sheer logistics of hydrogen make it always an unlikely solution to global energy challenges
  • Birol’s article was followed by a report from the IEA that put some meat on the bones of the argument that hydrogen is key to solving problems such as global warming

DUBAI: Fatih Birol, executive director of the International Energy Agency, cracked a joke in the Financial Times a couple of weeks ago.
“Hydrogen is the fuel of the future, and it always will be,” he wrote about the fuel that many experts agree could hold the key to the world’s energy problems.
It was a deliberate poke at those experts who think that the sheer logistics of hydrogen — generation, storage, and transportation — make it always an unlikely solution to global energy challenges.
Birol’s article was followed by a report from the IEA that put some meat on the bones of the argument that hydrogen is key to solving such problems as global warming and environmental degradation.
“The world has an important opportunity to tap into hydrogen’s vast potential to become a critical part of a more sustainable and secure energy future … The world should not miss this unique chance to make hydrogen an important part of our clean and secure energy future,” the report said.
That argument will get a critical boost today, when Saudi Aramco, the biggest oil company in the world, opens its first hydrogen fueling station in Dhahran Techno Valley, in the heart of the Kingdom’s oil producing region.
Aramco has partnered with Air Products, a US company that has been a pioneer in the use of industrial gases, to produce a filling station for hydrogen-fueled vehicles.

 

It is very much a test. “The collected data during this pilot phase of the project will provide valuable information for the assessment of future applications of this emerging transport technology in the local environment,” Aramco said when the project was first announced.
But it is something Aramco has been investigating for a long time. Ahmed Al-Khowaiter, Aramco’s chef technology officer, said: “The use of hydrogen derived from oil or gas to power fuel cell electric vehicles represents an exciting opportunity to expand the use of oil in clean transport.”
Hydrogen — essentially what is left when you take the oxygen out of water — has been recognized as a potential fuel source for many decades. Motor manufacturers developed a hydrogen motor engine 50 years ago, but the ease and accessibility of hydrocarbon fuels — oil, gas and coal — made it uneconomic to develop this technology beyond the prototype stage.
Now, as the debate over the role of hydrocarbons in the global environmental balance has become ever more intense, some experts, including Birol and other influential parts of the thought-leadership establishment, believe hydrogen is the next Big Thing in global energy trends.
The World Economic Forum (WEF) said recently that “green” hydrogen offers a solution to the world energy challenge, and that is the problem the theoreticians are struggling with: Hydrogen is released naturally in the process of burning hydrocarbons, but it is self-defeating, in an environmental sense. if you have to burn oil, gas or coal to produce it.
On the other hand, renewable sources, like sun, wind and water, do not produce enough hydrogen to be practically or commercially viable, and not at the right times, when people actually need it.
But, as the WEF noted recently “low-cost green hydrogen is coming”, as technology advances mean the cost of renewable energy falls dramatically each year. The Middle East already has a very big and very cost-efficient program for solar energy generation.
The other challenges lay in how to store and transport hydrogen. It can be loaded onto a tanker like LNG, or pushed through pipelines, but it would require a huge investment to change current logistics systems — essentially designed for oil and LNG — to handle hydrogen.
Many countries, including Saudi Arabia, already have the infrastructure associated with oil and gas refining and petrochemicals production to be able to equip “hydrogen hubs,” as long as there is government will and commercial incentive to do so.
For the Kingdom, it looks like a no-brainer for the future. As Birol said: “So, hydrogen offers tantalising promises of cleaner industry and emissions-free power. Turning it into energy produces only water, not greenhouse gases. It’s also the most abundant element in the universe. What’s not to like?”

FACTOID

Technological advances mean low-cost ‘green’ hydrogen offers a solution to the world energy challenge, according to the World Economic Forum.