Issue 111 | Sept. 23, 2019
Brexit: What Trade Deals Has the U.K. Done?
 
If Brexit happens on Oct. 31, the U.K. will need to negotiate free trade deals to escape tariffs. Currently, the U.K. has signed 13 "continuity deals" (keeping the EU standards of free trade) and is expected to formally sign "an agreement in principle" with six African countries. Work on a free trade deal with the EU (46 percent of all U.K. exports) and U.S. (19 percent of all U.K. exports) has yet to be completed. Read more
 
Response to Attack on Saudi Oil Shows Market Changes

This past weekend witnessed the highest surge in oil prices in nearly three decades. The ten percent rise is due to a drone attack on more than half of Saudi Arabia's oil, which makes up approximately five percent of the global oil market. Surging prices began to decline after a largely symbolic announcement from the U.S. government stating the Trump Administration's willingness to tap the country's Strategic Petroleum Reserve, calming investors. Reassurance from Saudi Arabia also helped prices, but many believe normal oil levels will not be restored for months. Read more
 
Impacts of U.S./China Trade Conflict on California Agriculture
 
As the world's two largest economies attempt to reach a trade consensus, California agriculture faces negative impacts. China has cut off agricultural imports from the U.S. in response to imposed tariffs. The U.S. has attempted to provide relief to California by offering more than $76 million (as part of the "Market Facilitation Program"), yet California agribusiness says this aid has done little to help the current situation and fears of the future. Read more
 
U.S. and Japan Enter Initial Trade Agreement

The White House announced an "initial trade agreement regarding tariff barriers" with Japan on Sept. 16. Although the details of the agreement are still unclear, Japanese and American officials have been hinting at a bilateral trade accord for months. This deal would likely represent a win for the Trump Administration's initiative to reshape America's international trade infrastructure. Read more
 
U.S.-China Trade Negotiation Increasing Demand for Space on Both Sides of U.S.-Mexico Border

Although the global economic implications of the U.S. and China trade negotiations remain unclear, the real estate industry on both sides of the U.S.-Mexico Border seem to be positively impacted. Some Chinese corporations are moving to Mexico or American states alongside the border to escape high tariffs. This leads to an increase in demand for warehouse space, spurring industrial development on both sides of the border. Read more
 
Some U.K. Exports Conflict with Post-Brexit Deals

Locally produced food and animal products are facing difficulty in regards to trade with the EU in a post-Brexit society. Many of these companies lack Export Health Certificates (EHCs). An estimated 1.9 million certificates would need to be issued to accompany these products to the EU if Brexit is passed. It is predicted that many of these companies will not meet the strict non EU criteria for EHCs and a lack of authorized signers for EHCs will prevent eligible candidates from receiving clearance in time. This will heavily impact the agribusiness-reliant Northern Ireland. Read more
Blockchain and Fintech: Bridging the Global Trade Gap
Wednesday, Oct. 16
 
Join the Global Initiatives Council to hear from Edward Achtner, head of digital banking and strategic change, HSBC, and Bryan Myint, partner, Republic & founding partner, Taureon Capital, as they share thoughts on lessons learned across various digital transformation trends, as well as tips for business leaders to stay on top of this technological movement. RSVP here. 
 
Compiled by Center for Global Trade & Foreign Investment intern Serena Allen.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.