G20 SUMMIT PROMISE TO PRODUCE TRADE TRUCE FOR THE TWO WORLD ECONOMIST
The G20 summit concluded yesterday in Buenos Aires, Argentina was applauded by participants from different countries of the world. The meeting was attended by heads States from all continents, which lasted for three (3) days.
The theme of this year’s ‘G20 SUMMIT’ was focused on trade and migration, not on climate change as discussed in the previous year’s Summit. However, the three (3) days Summit held in Argentina ‘Buenos Aires’ went peaceful with heads of states meeting on economic issues and migration. Meanwhile, the focus on global trade issues was directed to China and the United States respectively, which are the two largest economists in the world.
On Saturday, Russian President ‘Vladimir Putin’ had a meeting with Saudi Crown Prince ‘Mohammad Bin Salman’ within the premises of the G20 Summit, while details of their meeting were based on bilateral trade. And on the other hand, the meeting between Russia and Saudi Arabia was concluded with both countries agreeing on oil production adjustment in this week’s OPEC meeting, meant to take place in Vietnam.
According to Russian media, Putin regrets not meeting with United States President ‘Donald Trump’ at G20 Summit, though Trump met with Putin on a brief note at the summit, according to the white house report.
Donald Trump, while at the meeting with Chinese President, ‘Xi Jingping’ talked about United States’ relationship with China, which was enhanced by 41st President of United States ‘George H. W Bush’ in the year 1989, who was once a CIA director. It is understood one big headline at G20 Summit held in Argentina was the United States (US) and China’s trade tariffs.
Since the reform of the World Trade Organization (WTO) was an issue in the G20 Summit, and no trust on the table, between China and the United States of America. Trump’s administration had earlier threatened to pull out of WTO.
As the dialogue between China and the United States of America extended to the next day after their first meeting, it was observed an agreement has been reached. The United States President ‘Donald Trump’ believes and sees himself as a deal maker, bearing risk to rescue the United States economy and jobs.
Yesterday Xi Jingping and Trump agreed on a truce on imposing the new tariff. While both sides are saying a seize fire on the trade war, tariffs are said to be frozen at the current level. And while the West is isolating Saudi Arabia, it will benefit Russia, importantly increasing oil production, as they protect their economy.
As the United States and China agreed to suspend tariffs and get back on the negotiation table, observers are watching to see what they can work-out within the next ninety (90) days. Based on this, the market’s is expected to react positively today since no treat on trade between China and the United States of America.
Finally, most Argentine’s see G20 Summit a success. With this success, China made four hundred million dollars ($ 400m) trade agreement with Argentina. And President ‘Xi’ after the summit proceeded to Panama and Portugal for bilateral trade.
- Would China and the global market rebound with this TRUCE?