More gas than US companies, fewer US export duties, lower taxation for Silicon Valley giants, commitments to stop using third countries as “intermediate” to send its products to USA. These are the four demands that the government is expected to put Trump In negotiations with dozens of countries trying to avoid sweeping duties, which were imposed for a while last week before they were suddenly suspended.
Following Donald Trump’s unexpected decision to suspend the imposition of new duties in more than 70 countries, the White House is preparing for a “bargain” bargaining bargaining that may fundamentally form the US trade relations with the rest of the world, Washington Post.
Diplomats and commercial representatives are trying to intersect information with each other in an effort to identify who are the right interlocutors in the US government and what are the proposals that could be heard at the White House. However, the landscape remains cloudy.
Characteristic of the example of BMWwhich Trump’s Advisor Peter Navarro accused her of investing in South Carolina ‘Hurts America’ – Although this factory is a model of the productive revival that Trump himself pursues.
Analysts estimate that the main target of the US government is the isolation of China from international supply chains. The US is asking for countries such as Mexico and Vietnam Stop operating as intermediate stations for Chinese products that eventually end up in the US market.
But the dependence of many Asian economies on China – in some cases up to 40% of their imports – makes it difficult to accept US terms.
As former US Deputy Commercial Representative Sarah Bianki noted, “Many countries are not willing to openly open against Beijing, especially after Trump’s unilateral threats that caused disruption to the world economy.”.
“The key issue is to ensure that the products coming from Vietnam are really Vietnamese,” explained Daniel Kissi, a political adviser to the American Compass. Trade lawyer Richard Mohika estimated that Mexico may accept restrictions on Chinese imports to reach an agreement with the US.
Gas, beef and technology
Two sources with knowledge of the plans of the Trump government have said that agreements are likely to include a series of commitments to the benefit of specific US industries.
For example:
- OR Japan may agree on the market of large quantities of American gas
- OR EuropeOn the other hand, it maintains taxes and regulations for technological giants and restrictions on imports of American beef meat, issues that can be raised.
- The US farmerswhich have been significantly affected by the trade war, could see opportunities if Europe reduces restrictions on some American agricultural products.
Many countries do not exclude from responding to their own countermeasures, and Trump himself has shown that he is influenced by the nervousness of the money markets, which can be a weakness in the US negotiating position. “
“The crucial question is whether they will come up with surface agreements to favor some companies, or whether they will focus on substantial commitments to balancing trade and strengthen domestic production,” said Lori Wollah, director of the Rethink Trade at the American Economic Liberties.
“If the goal is simply for Europe to abolish the technology privacy policies and to allow the introduction of American beef, then we are not talking about tackling the chronic US trade deficit with the rest of the world.”