Wednesday, July 9

Global Trade

China’s Exports Rise, Adding to Economic Growth in 2020
8Nov By Patti MohrNo Comments
Global Economics, Global Trade, Types of News: Brief

China’s Exports Rise, Adding to Economic Growth in 2020

November 8, 2020--China's foreign trade expanded 4.6 percent year-on-year in October, helping the country sustain economic growth for the year, despite the COVID-19 pandemic. Overall, China's foreign trade grew by 1.1 percent in the first 10 months of the year, according to official data the Chinese government released yesterday. With exports accounting for nearly a fifth of China's economy, the export growth helped lift China's GDP by 4.9 percent in the third quarter. Export Growth Jumps in October In response to the impact of the global pandemic, the government streamlined customs procedures and provided incentives for cross-border e-commerce. Mechanical and electrical parts accounted for the largest share of the country's exports. Textile exports, which include masks, incre...
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Global Trade Shows Signs of a Comeback; US Trade Deficit Hits a High in August
7Oct By Patti MohrNo Comments
Global Trade, Globalization, Global Disintegration, Types of News: Brief

Global Trade Shows Signs of a Comeback; US Trade Deficit Hits a High in August

October 7, 2020-After months of a sharp decline in global trade, signs are beginning to emerge that trade and economic activity are starting to pick up, according to the World Trade Organization. One indication, for example, comes from purchasing orders by business managers. They show a sharp rebound in August after reaching record lows earlier this year. For specific numbers, look to the WTO's review of data from JP Morgan and IHS Markit. It shows the manufacturing index climbing back to its norm of 50 after a drop to 27 in April while the service sector hovered around 47., moving closer to its trend after a dip to 21.8. Sector Specific Some sectors were hit harder by the pandemic this year than others. Looking at the second quarter of the year, global trade in agriculture p...
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Shocks Disrupt Global Supply Chains, But Firms May Keep Manufacturing in China
17Aug By Patti MohrNo Comments
Global Trade, Globalization, Global Disintegration, Types of News: Brief

Shocks Disrupt Global Supply Chains, But Firms May Keep Manufacturing in China

August 17, 2020--Multinational companies that use complex global supply chains to produce their products might shift as much as a quarter of their production to new countries in the next five years, according to the McKinsey Global Institute. It's not the end of globalization, but "an opportunity to reinvent it," the business think tank says. Disruptions from Shocks Shocks such as COVID-19, political instability, cyberattacks, financial crises, and extreme weather due to climate change are impacting trade flows and disrupting production facilities around the world. According to a report released by McKinsey this month, shocks are rising and imposing greater risks to global companies. "Intricate production networks were designed for efficiency, cost, and proximity to markets b...
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9Apr By Patti MohrNo Comments
Global Economics, Global Trade, Types of News: Brief

Global Economy Faces ‘Sharply Negative’ Outlook for 2020; Partial Recovery Possible for 2021

April 9, 2020-Despite fiscal stimulus of $8 trillion by governments around the world, the global economy may turn "sharply negative" this year due to the COVID-19 pandemic, according to the International Monetary Fund. Meanwhile, experts predict massive declines in global trade and employment. "Today we are confronted with a crisis like no other," IMF Managing Director Kristalina Georgieva said on Wednesday. "Covid-19 has disrupted our social and economic order at lightning speed and on a scale that we have not seen in living memory." The outlook is bleak for both advanced and developing economies. The IMF projects negative per capita income growth in over 170 countries this year and only a partial recovery under baseline assumptions for 2021. Georgieva emphasized that 2020 wil...
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Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’
22Jan By Patti MohrNo Comments
Energy Policy, Oil & Gas, Global Trade, Types of News: Brief

Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’

January 22, 2020-In a sign of the escalating tensions between the West and Iran, more countries are expressing support for the international coalition protecting shipping traffic through the Strait of Hormuz. South Korea is the latest to announce a plan to send a naval destroyer to the strait. On Tuesday, the government said it is sending an independent and temporary mission to "guarantee the safety of our people and the freedom of navigation of our vessels,” according to a news report in Stars and Stripes. Iran had previously warned South Korea against joining a US-led coalition. New European Naval Mission On Monday, the governments of Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, and Portugal released a joint statement warning that rising instability in the ...
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16Jan By Patti MohrNo Comments
Global Trade, Types of News: Brief, United States

Congress Clears US-Mexico-Canada Trade Deal

January 16, 2020-It's a big week for trade. A day after the United States and China agreed to a phase one of a trade deal, the U.S. Senate approved a trade agreement that replaces NAFTA. Only nine senators voted against it while 89 voted for it. Since the House has previously passed it with a bipartisan 385-41 vote, the agreement is cleared for the White House. The deal, the USMCA, is a massive three-way agreement that covers goods worth about $1.3 trillion. Leaders of Mexico, Canada and the United States signed the deal in late 2018. Mexico's Senate voted for the agreement on June 20, 2019 and a revised treaty on Dec. 12, 2019. It's up to the Mexican president to ratify it. Canada is expected to consider implementing legislation when the new Parliament begins its session. For...
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8Jan By Patti MohrNo Comments
Global Trade

Senate Panel OKs North American Trade Deal

January 8, 2020-The Senate Finance Committee gave its mark of approval yesterday to the United States-Mexico-Canada Agreement, which the three countries' leaders agreed to a year ago. If ratified by legislatures in all three countries, the USMCA would replace NAFTA. "USMCA will bring much needed certainty, and real benefits to America’s farmers, workers, and businesses," Senator Charles Grassley said. Senator Wyden praised the new enforcement mechanisms. Democrats worked with President Trump to include financial assistance through the Labor Department to help improve labor standards in Mexico and strengthen U.S. capacity to identify when Mexican factories violate labor standards. "So when you combine this all-in approach on enforcement with new commitments on labor rights and ...
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NAFTA Replacement to Move Forward in U.S. Congress
10Dec By Patti MohrNo Comments
Global Trade, Types of News: Brief, United States

NAFTA Replacement to Move Forward in U.S. Congress

December 10, 2019-House Speaker Nancy Pelosi and fellow House Democrats announced support for the U.S. -Mexico-Canada Trade Agreement today. Pelosi said the trade agreement is better than NAFTA and "infinitely better" than what President Donald Trump had initially proposed. "It's a victory for America's workers and one we take great pride in advancing." It's been a year since the leaders of Canada, the United States and Mexico signed the trade agreement. The deal covers agriculture, intellectual property, digital trade and financial services. The legislatures in all three countries need to ratify the deal before it takes effect. Democrats said the key to winning their support was working out enforcement mechanisms, particularly in the areas of labor and environment.
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South Korea Opts Out of Special Trade Status for Developing Countries
28Oct By Patti MohrNo Comments
Foreign Aid, International Development, Global Trade, Organizations, IMF, WTO, G7, Types of News: Brief

South Korea Opts Out of Special Trade Status for Developing Countries

October 28, 2019-South Korea plans to give up a special status in the World Trade Organization. The status gives developing countries longer time periods to implement trade agreements and the ability to increase trade opportunities. South Korea Finance Minister Hong Nam-ki made the announcement late last week, saying it reflects his country's growing economy and external pressures. South Korea's economy is worth $1.5 trillion and is the 11th largest economy in the world. In July, U.S. President Donald Trump called on strong economies such as China to shed the special status. His July memorandum makes specific recommendations regarding the treatment of countries that he says should no longer be treated as developing economies. Singapore, Brazil, the UAE and Taiwan have also pledged...
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Russia Signs Arms, Energy Deals with African Countries
24Oct By Patti MohrNo Comments
Arms Sales, Military Industry, Diplomacy, Energy Policy, Oil & Gas, Geopolitics, Global Trade

Russia Signs Arms, Energy Deals with African Countries

October 24, 2019—In the first-ever Russia-African Summit being held this week in Sochi, Russia, Russia signed a series of memorandum of understandings and trade agreements with 54 African countries, the Moscow Times reported. The deals include $4 billion worth of Russian weapons, military helicopters, an investment cooperation deal on an oil pipeline, and potentially a nuclear power station in Ethiopia, according to the article. Debt Write-Off Russian President Vladimir Putin offered to write off $20 billion worth of African debt. Furthermore, he said he plans to double Russia's trade with the African continent within four to five years. Rosatom, a state-nuclear company is in talks with the government of Ethiopia to build a nuclear power station. The Russian enterprise already has...
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