World Events Summary: 9th-15th January 2018

Canada, NAFTA, WTO: as the U.S.-instigated renegotiation of NAFTA nears its crucial phase unnamed Canadian government sources briefed Reuters about increasing concern regarding the potential for Trump to pull-out of the deal. In anticipation, Canada took a case to the WTO concerning the U.S. unilateral tools for seeking redress in ‘unfair’ competition cases – alleged dumping or state subsidies. 

China, Trump and RMB: the confidential U.S. probe into Chinese trade practices in the steel sector has been completed and delivered to Trump. The U.S. administration now has 90 days to respond – a deadline which will encompass the State of the Union speech. The internationalization of the RMB gained further acknowledgement when the Bundesbank announced it will be included in its reserves. 

One-Belt-One-Road: the Australian government criticized China for building “useless” infrastructure in the Pacific. The criticism encompassed much of the U.S. narrative on OBOR, suggesting that Beijing was indebting small countries and seeking to gain influence without producing sustainable development. The Chinese government rejected this, saying that the claims were “full of ignorance”.