Tuesday, July 24, 2018

G20 and trade war

The G20 meeting has begun, One of the main themes of this conference is how to deal with the current trend of globalization.

Most nations, especially in the EU, are willing to guarantee open and free trading to defeat protectionism. But the US administered by Donald Trump is against this idea. The conflict became deeper after the US strengthened the tariff against China.

At the same time, Japan made a historic contract with the EU. This EU-Japan economy partnership is expected to reduce a total of one billion Euro in the customs duty.

Independent: EU and Japan say new trade deal is signal to the world that protectionism does not work

Japan is the most significant ally of the US, both in the historical view and political context. However, Japan and the US is sometimes competing in the economic field. Therefore, Japan has to make valuable deals with EU and Asian nations as well.

I do not believe Trump's America First policy will work forever. It seems practical in a short-term but will reduce the principal strength of the US in a longitudinal view. I am not sure which nations will be dominant in the next era.

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