Issue 112 | Oct. 18, 2019

China/U.S. "Phase One" Trade Deal

 

The "Phase One" agreement between the U.S. and China is meant to be signed in November, with a second phase following shortly after. This deal is meant to lead to China buying $40 to $50 billion in American agriculture as well as strengthening protections for American intellectual property and giving financial services more access to the Chinese market. The U.S., in exchange, has stalled its tariff increase valued at $250 billion. It is still unclear if these tariffs will be raised in December. Read more

 

U.S. Talk of Placing Restrictions on Teargas Exports and Crowd Control Technology to Hong Kong

 

The American House of Representatives has proposed a bill (H.R. 4270) that would prevent the exportation of defense articles and munitions to the Hong Kong police. The Congressional Budget Office estimates this will cost $3 million in total from the 2020 to 2024 period. Primary costs include enforcement personnel and the reporting requirement of the bill. Insignificant effects are expected on the total net direct spending. Read more

 
U.S./Japan Limited Trade Agreement

The U.S. and Japan have negotiated a new trade deal meant to bring more business to the American agriculture sector. Since disbanding a trade agreement from the previous administration, U.S. farmers have fallen behind countries like New Zealand and Canada in trade with Japan. This deal does not resolve the issue of automobile trade between Japan and the U.S. and the 2.5 percent tariff for Japanese automobile importation stands. Read more
 
Global Stocks Lower As Fear of U.S. Tariffs Grow
 
With a multitude of new U.S. trade deals, anxieties of global investors grow. The recent fall can be attributed to a number of factors, including a new report on economic data released from U.S. and the World Trade Organization that paves the way for $7.5 billion in U.S. tariffs on EU goods. Trade tensions between the U.S. and parts of Asia as well as recent oil price changes also contributed to fears on the strength of the global economy. Read more
 
U.S. Signals Potential of Raised Tariffs on Turkey

The U.S. has threatened tariffs on Turkey unless the nation agrees to withdrawal its militaristic offense in northeast Syria. Additionally, the U.S. is halting negotiations on a potential $100 billion trade deal. U.S. sanctions may not only impact Turkey, but also banks and business in the U.S. and Europe. The lira's value against the U.S. dollar fell almost 2 percent over the weekend after the administration released plans for Turkish sanctions. Read more
 
California on the Global Stage
Wednesday, Nov. 20
 
Join the Global Initiatives Council to hear from Bud Colligan, senior adviser for international affairs and trade at the Governor's Office of Business and Economic Development, as he discusses California's strategy to expand international trade and investment opportunities. RSVP here. 
 
Compiled by Center for Global Trade & Foreign Investment intern Serena Allen.

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