With Donald Trump’s return to the White House, economic partners of the United States accelerated to conclude new bilateral trade deals and redirect supply chains to adapt to increased American protectionism.
According to a report published by the Financial Times, countries adopt the tactics similar to those that were used during the first Trump period, as more commercial agreements have been concluded among them to confront the barriers established by the largest consumer economy in the world.
Since Trump’s election in November, the European Union has concluded a long -awaited trade deal with the “Mercosur” bloc of the South American countries, updated the Free Trade Agreement with Mexico, and reopened negotiations with Malaysia, which was stalled for more than a decade.
Trump threats
In the early days of his second term, Trump threatened to impose customs tariffs of 100% on China, and 25% on Canada and Mexico, and indicated that he is considering imposing comprehensive fees on all American imports, according to the Financial Times.
It also ordered US government agencies to investigate commercial issues that include manipulation of currencies and counterfeit commodities.
Accelerated movements
The Malaysian Minister of Trade, Tenko Zurgal Aziz, told the Financial Times that Trump’s return “may push countries to diversify their commercial wallets more.”
He referred to the example of the comprehensive and progressive partnership agreement across the Pacific Ocean, which has moved forward with 11 members in 2018 after the United States withdrew from the talks.
Aziz said that this deal “showed the flexibility of countries wishing to cooperate even in the absence of traditional economic leaders such as the United States.”
While the European Union Trade Commissioner, Marush Shevchevich, referred to a “great interest” by ministers from the Gulf states and others in concluding deals with the European Union.
He added that the team of commissioners will visit India in the coming months to make progress in commercial negotiations and technological partnerships.
For its part, Cecilia Malmstrom, the former negotiation of the European Union, said that during the first Trump period, the European Union concluded deals with Japan, Singapore and Vietnam, and started talks with New Zealand and Chile, and these agreements were completed in the end.
“There were a lot of deals. We thought the world was harsh. We do not believe in commercial wars. We have an unexpected president who casts definitions everywhere. We will see what we can do together.”
New regional trade agreements
In 2020, the Southeast Asian Nations Association (ASEAN) was formed in addition to China, Japan, South Korea, Australia and New Zealand, the comprehensive regional economic partnership, which mainly reduced non -customs barriers for trade such as veterinary controls and customs procedures.
The partnership covers about 2.3 billion people and represents 30% of global GDP, compared to 25% for the United States.
In addition, the African continental free trade zone began in 2021, which aims to cancel 90% of customs tariffs over time.
Continuous growth for global trade
The newspaper notes that, despite the Korona and the high protectionism, the trade of goods and services continued to grow in recent years.
According to Lingicom Skuttom of the Kato Institute, a Washington -based research center, “Regardless of what Donald Trump will do in the next few years, it seems that everyone is not ready to adopt costly economic isolation and will go foot without us. There are about 370 valid commercial transactions starting in mid -2024 Without any sign of an imminent reflection. “
Meanwhile, China recently concluded deals with Serbia, Cambodia, Nicaragua and Ecuador, as Beijing, which Trump considers the largest competitor to the United States, represents about 30% of global manufacturing.
A high -ranking commercial official, who asked not to be identified in an interview with the newspaper, expressed his questioning of the possibility of a large number of commercial agreements this time, explaining that the remaining deals that have not yet been concluded are more complicated and require more difficult negotiations.
He said: “Trump’s return may motivate the conclusion of some new bilateral agreements, especially in Africa, but in Asia, most of the main deals have already been concluded, so I am preparing for different challenges this time.”
