EDITOR’S DESK
THE G-20 SUMMIT – TARIFF WAR
COMES TO A HALT
The two-day G-20 Summit held in Osaka
(Japan) on 28 th -29 th June, 2019 ended in
positivity with the US President Donald Trump
and his Chinese counterpart Xi Jinping
agreeing to resume trade talks after a seven-
week breakdown. This has averted an
escalation of multi-million tariff war that has
shaken global markets and threatened the
future of world's two largest economy.
Although this may not be termed as a major
breakthrough in resolving the fundamental
conflict on trade-front still it represented a
ceasefire to give two warring nations a chance
to forge an accord.
President Trump promised to put on hold (25%
on $ 300 billion) NEW TARIFFS on exports from
Beijing for now. This is very positive but has to
be followed by a concrete deal to ensure such
tensions don't recur in a few months ahead.
The deal will help in bringing back positive
sentiments in the global trade and investment.
The US will lift some restrictions on Chinese
company Huawei and in exchange China
agreed to buy a tremendous amount of
American food and farm products. Lot of things
were discussed on the sidelines of G-20
summit. Trump said that “We are right back an
track”, “Better than expected and the
negotiations are continuing.” President Xi said
that the two sides were very harmonious and
the area of cooperation are broad.
The US-China trade talks will help India also.
India has several issues and the US has
promised to work with India on data
locatisation, IPR, 5-G, defence and security
concerns on account of tensions with Iran.
Modi – Trump meeting on the margins of the G-
20 Summit in Japan seemed to have gone off
well with Trump telling the Indian side that he
hoped to announce big things and big trade
deals with some positive outcomes. Let us hope
the coming events on trade front will surely
help the global economy and India as well.
Economic Challenger// ISSN 0975-1351/ Issue 84, July-September, 2019
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