Trade war looms after U.S.’s tariff announcement

The announcement of President Trump’s recent tariff hikes sparked speculation across the globe. Is a global trade war on the cards? Leon Perera, CEO of Spire Research and Consulting, shared his thoughts in The Business Times – Views from the Top section on 19 March 2018.

President Trump is heading into dangerous waters with the recently announced trade tariff hikes, for which his administration has cited national security as the rationale under US Trade Law and Article XXI of World Trade Organization’s (WTO) treaty.

Voicing concern, Perera highlighted that other nations may use the same pretext to justify retaliatory tariff hikes, placing the tit-for-tat hikes beyond the usual WTO dispute resolution protocols.

Nonetheless, the US economy gains more from relatively open global trade, which is why President Trump’s tariff hikes are not broadly supported by the American establishment and not even by most leaders of the President’s Republican party.

This means an all-out trade war is not likely. However it cannot entirely be ruled out. Singapore businesses need to hedge their risks by establishing subsidiaries within large economic areas such as the European Union (EU) and the North American Free Trade Agreement (NAFTA), to maintain a point of domestic supply in these vast economic regions in case global trade relations deteriorate.

https://www.spireresearch.com/newsroom/media/trade-war-looms-after-u-s-s-tariff-announcement/

Comments

India ranks among the world’s top compact SUV markets!

India overtook Japan in 2017 as the third largest manufacturer of compact SUVs. Big players such as Renault, Mahindra & Mahindra, Ford Motor, Hyundai Motor, Maruti Suzuki and other SUV manufacturers sold 457,698 compact SUVs in 2017 – over four times the unit sales in 2015, at 107,634. While 2016 saw shrinking sales for this vehicle category in China and the USA, sales in India grew nearly 50% from 307,365 units in 2016. Will India overtake China as the world’s largest compact SUV market? For more information, click here.

Asian consumers embrace local brands

With growing regional integration and rising incomes, more Asian consumers are choosing Asian brands against foreign brands. Xiaomi, an Asian brand, outsold Apple in China in 2014 for the first time. Brunei based brand – Brunei Halal – recently opened stores in Malaysia targeting its Muslim population. The Indian government’s knowledge website initiative – known as Vikaspedia and offering content in 22 different local languages – is gaining ground. Taobao, Air Asia, Alipay, Huawei, Siam Cement, San Miguel, Tiger Beer and Indofood are other Asian brands that are on the march. They all hail from countries other than Japan, Korea and Taiwan, the traditional sources of Asian brands. Will more Asian brands take the leap to become global brands as the top Japanese and Korean brands have become? https://www.spireresearch.com/newsroom/spirethoughts/asian-consumers-embrace-local-brands/

Egyptian-Israeli gas deal to boost bilateral trade

A USD15 billion deal has been announced between Israel and Egypt to export natural gas. Israel’s Delek Group has signed an agreement to supply 64 billion cubic meters of gas in a span of ten years to Egypt’s Dolphinus Holdings. The deal is considered a milestone ever since the 1979 peace accord, bringing Egypt a step closer to becoming a regional energy hub. However, the transportation of natural gas from Israel to Egypt is a challenge given the security risks. Will the Egypt-Israel gas export deal usher in a relationship of bonhomie and economic co-operation? For more information, click here .

Japan and EU revive trade deal

The Japan and the European Union (EU) have formally agreed on the outlines of a free trade deal. The two crucial sectors affected will be the automotive sector for the EU and the agri-food sector for Japan. The deal, which has already been agreed on in-principle, will take about 15 years to take effect. This Japan-EU trade deal is being touted as a strategic partnership that will boost co-operation not only in trade but also in other areas of policy such as climate change reforms. What will be the global implications of the Japan-EU trade deal? https://www.spireresearch.com/newsroom/spirethoughts/japan-and-eu-revive-trade-deal/

Google’s Project Loon balloons to provide internet in India

Can a network of floating balloons offer internet services? It seems to be a scene right from a science-fiction movie. Tech giant Google has launched a network of balloons that travel 20 km above ground level to deliver signals using LTE technology making the internet available at 4G speeds even in rural areas. First launched in New Zealand in 2015, the balloons later made their way to Brazil, Australia and recently Sri Lanka and Indonesia. The Indian government is still apprehensive about this technology, in the face of claims that it could lead to technical glitches due to interference with cellular transmission. Nonetheless, the government is yet to come back with a conclusive response. Will balloons bring the internet to every square inch of the world’s second most populous country? https://www.spireresearch.com/newsroom/spirethoughts/googles-project-loon-balloons-to-provide-internet-in-india/

The Knowledge to Decide

Search This Blog