all eyes were made at this meeting which took place on Saturday night in the downtown. There was no peace, but there is truce among the countries that account for about 40% of world GDP. International trade, in conjunction with finance, breathe. The trade war the dispute began to glimpse in the Trump electoral campaign, under the slogan “Make America Great Again” (make America great again) the future President made clear he wanted to position itself once again as the world power (only?) undisputed, stop buying so much abroad to happen on American soil and a battery of protectionist measures to enlarge the country again.
The problem: the largest economy in the world, USA. UU, buys the second, China, far more than it sells, generating a trade deficit of more than a half trillion dollars, leaving no sleep to Trump. Add one fact no less and is China disputed world hegemony, with the economy growing more from 2009. Tensions between the Giants were made this year, when United States put tariffs against Chinese products to make their products and try to reduce its trade deficit in January. In June, tensions escalated because tariffs grew. China accused the United States of unleashing history’s largest trade war and immediately announced tariffs of the same value. The war began.
The confrontation continued in September, when the U.S. Government announced tariffs on products with a value of $ 200 billion and China with tariffs of 60 billion dollars. While the American President himself boasted a few months ago that a trade war against China would be “easy to win” the effects of increases in tariffs had effects on his country. The low price of soybeans and the rise in interest rates by the Federal Reserve, with its consequent strengthening of the dollar, further complicated U.S. exports.
The truce by the Covenant of the two Presidents, the White House announced that the new tariffs by 200,000 million dollars that were to enter into force on 1 January are postponed until March 1. Chinese media reported a truce without specifying the date and the Asian giant pledged to buy a “substantial amount” not yet specifically U.S. products. However the peace seems distant, the topics covered include technology transfer, protection of intellectual property, non-tariff barriers, piracy and computer break-ins, services and agriculture. Implications for Argentina the own Christine Lagarde, Director of the International Monetary Fund, called the truce at the end of Summit, emphasizing the effects I had for emerging economies.
“The pressures on emerging markets have grown and trade tensions have begun to have a negative impact,” said Lagarde.
The increase in U.S. interest rates relocalizo capital to their lands, with a strengthening of the dollar that worsened the conditions of the emerging countries who behave get credits. Why is 90 days of truce to bring calm in the financial conditions that give respite to emerging economies in general and to the Argentine economy in particular.
