Well Begun is Half Done: On the U.S.-Japan Trade Deal

There have been multiple speculations revolving around the Japan-US trade agreement. The U.S. President Donald Trump has stalled imposing 25% tariff on Japanese automobile parts. On 25th September, Mr. Trump and Japanese Prime Minster Shinzo Abe signed a trade deal.

Here are are some of the highlights of the trade agreement -

Gateway for Japanese market: This deal will help Japan expand its market to $7 billion worth of American agricultural goods.

No burden of extra tariff: Abe assured that the US will not impose previously threatened “section 232" national security tariff on Japanese automobile parts. It is a success for Japan. Further talks between the two nations also seeks to eradicate prevailing 2.5% U.S. tariff on Japanese cars.

Triumph for the US farmers: Under the new deal 90 % of the US food items will either duty free or completely exempted from tariff. Trump was complaisant with this move, labelling it as “victory” for farmers and growers who were disadvantaged earlier. Now Japanese tariff for US agricultural goods would be lower on American beef, pork, wheat, cheese, corn, wine and more. The tariff percentage is reduced from 38.5% to 26.6%.

High standard of Digital trade: This deal would catalyze the US in modernization of digital trade rules. Japan is expected to reinforce the U.S. model of internet development. The agreement is monumental for both the nations in terms of their impeccable position the the world as they facilitate rules for digital commerce.

Comments

Stagflation: A Threat to India

India is entering into the stage of stagflation, just 2 years ago it was expanding at 8% and emerging as a major global player, the situation has come down to this. With higher prices of food, The new citizenship act, and the central bank's target, India is meeting its slowest development in a decade. The inflation in December 2019 increased to 7.35 percent which was the highest since July 2014, which is past the RBI limit of 6%. But what led to this situation? We have had demonetization in 2016, the implementation of GST followed by many other policies but what led to this? Let's look at some facts. The consumption of volatile oil makes up about 60% of gross domestic product which puts off all the investment plans. Economic growth in the fiscal year through March 31 is set to slow to an estimated 5%. Teresa John, an economist at Nirmal Bang Equities Pvt in Mumbai, quoted “The recovery is likely to be very gradual and a stagflation scenario is likely. ” The government has...

Changing Environment For Local Business In Sri Lanka; Government Initiates The Revolution

Local industries and businesses are the backbone of the economy of any country. Additionally, Sri Lankan Government defines a local company as one with a minimum ownership of 51% of a Sri Lankan. To help these companies grow, the Sri Lankan Finance Ministry has proclaimed a circular enlisting the priorities to the local companies. Moreover, this move from the government may bring some salient alterations in the condition of the local manufacturers. The government has also come with up steps that will augment the local industries across the different domains. These domains include IT sector, construction, etc. The circular, as issued by the government includes relevant documentation regarding sourcing of resources and products. Additionally, sources point towards the fact that the government is hoping to extend support to the domestic sector and help them grow. Besides, the major focus is on the three sectors- IT software and hardware, construction and furniture and allied products. Pos...

Significance of the “Developed Country” Tag for India

By Xeena Mehta The officials of the United States Trade Representative (USTR) uphold a list of countries that categorises countries as “developing”, “developed”, and “least-developed”. Countries that are classified as “developing” have permissions to export certain goods to the U.S. without being hit by heavy legal tariffs that are bind to be imposed on goods from “developed” countries. The “developing country” tag was originated by U.S. Trade Act of 1974, to aid poor countries develop faster. World Trade Organization also acceded to grant trade benefits to countries that were classified as poor. If noticed we can see that about two-thirds of countries that are members of the WTO classify themselves as “developing” countries and avail fore deals. Any such classification of whether a country is “developing” or not is entirely objective. While the economic progress achieved by India and China have achieved over the last few decades is seen as a valid reason to get rid of their s...

Entrepreneur Digest

Search This Blog