World Events Summary: 27th-30th March 2018

Trade: while markets continue to discount concerns about a potential U.S.-China trade war various issues are being debated. At the WTO the legality of U.S. tariffs on China was debated. In communist party mouthpiece Global Times the idea of targeting ‘U.S. Colony Canada’ over anti-dumping rules was discussed. Trump was reported to be considering an emergency law to stop China takeovers. 

NAFTA: reports claimed that Canada and the U.S. are getting closer to an agreement, after the U.S. withdrew a demand for 50% of autos content to be generated in the U.S. A new plan has been suggested – stipulating the amount of content that is created in high wage areas within NAFTA. 

North Korea/China: Chinese data suggest it went beyond UN sanctions requirements in suffocating the North Korean economy prior to Kim Jong-Un’s visit to Beijing. It has also been reported that Kim was the instigator of that trip – suggesting that North Korea is keeping its diplomatic options open. 

South Korea/U.S.: changes to the bilateral trade agreement included a side deal on currency management. After an accelerated effort to overcome U.S. trade concerns Trump has now decided to delay signing the new provisions – seeking to use it as leverage over the South during talks with the North. The U.S worries that the current government in the South could be too eager for a deal.