February 17, 2019

Indian economy to benefit from China-US trade war, says UNCTAD report

06 February 2019, 06:07 | Joann Bryant

US-China trade war: UN warns of 'massive' impact of tariff hike

US-China trade war a boon for Europe, UN study says

The world's two largest economies have 24 days left in a three-month truce in their trade war before U.S. duty rates are due to rise sharply - an escalation that economists say could be a powerful negative shock to the global economy.

"We are also very focused on free and fair trade for USA companies to have access there and to having a more level playing field which will bring down the trade deficit", Mnuchin said.

The tech industry has been closely tracking the escalating tariffs imposed by the US and China on one another.

The report said Asian countries are likely to suffer most from protectionism.

In a bid to meet the US' demand of bringing down the United States dollars 375 billion bilateral trade deficit, China has pledged to take measures to step-up American imports and investments. The 10 percent tariffs are set to climb to 25 percent unless there is significant headway on a trade deal by March 1. "We are now making it clear to China that after years of targeting our industries and stealing our intellectual properties, the theft of American jobs and wealth has come to an end", he said.

Also, UN research released yesterday argued that while Asian supply chains are likely to suffer from the tariffs, U.S. firms won't see much benefit.

The Chinese side agreed last week at a meeting with representatives of the United States in Washington to include issues related to hacker attacks on U.S. companies in the list of topics for discussion at the trade negotiations, The Wall Street Journal reported citing a source at the USA presidential administration.

"Countries that are expected to benefit the most from US-China tensions are those which are more competitive and have the economic capacity to replace US and Chinese firms", the UNCTAD said.

But the effects of the trade war won't be negative for all regions.

The study also underlines the "common concern" that trade disputes have an unavoidable impact on the "still fragile" global economy, particularly on developing, commodity-rich countries that are dependent on exports.

Other countries set to benefit from the trade tensions - which erupted in early 2018, when China and the U.S. imposed tariffs worth around $50 billion on each other's goods - include Australia, with 4.6 per cent export gains, Brazil (3.8) India (3.5), Philippines (3.2) and Viet Nam (5).

Unless the United States and Chinese agree to drop their tariff dispute by 1 March, duty on each country's products will rise to 25 per cent, up from the current 10 per cent level.

The study found that European exports will grow by $70bn, while Japan, Canada and Mexico will see exports increase by more than $20bn each.

The higher cost of U.S. What comes of any deal will depend on the political will of future presidents to use the same tariffs Trump has employed to enforce it, the official said.

Other News

Trending Now

Lady Gaga and Bradley Cooper to perform "Shallow" at Oscars
This was followed by a few minutes of a musical treat wherein they sung their uber-popular A Star Is Born hit Shallow . Fortunately, the Academy confirmed last week that all of the nominated songs would be performed at the ceremony.

Lakers interested in acquiring Bulls forward Parker
Davis informed the Pelicans that he wouldn't sign a five-year, $239 million supermax contract this summer or next. Though, he'd be an interesting addition for the Lakers.

‘Modern Family’ Renewed For 11th & FINAL Season!
If we were to do it, season 11 would be it, for sure. "We're all trying to figure that out", he said. ABC's award-winning sitcom "Modern Family ", which is in its 10th season, will wrap after season 11.

Obesity-linked cancers on the rise in young adults
Incidence in young adults also increased for two cancers that aren't linked to obesity: gastrointestinal cancer and leukemia. Even though cancer most often strikes older adults, the sharpest increases were found in younger age groups.

College student finds man living in closet, wearing her clothing
According to Maddie , she had noticed items of clothing going missing for some time in the run up to Sunday's upsetting discovery. Swofford was jailed in Guilford County under a $26,000 bond on 14 felony charges including larceny and identity theft.

Adam Levine responds to critics after Maroon 5's Super Bowl performance
Netizens immediately took to Twitter and were outraged about the fact that no action had been taken against Adam Levine . Tattoos were not the only reason Levine was getting roasted by the online community after his performance .

The Leading Goalscorers In El Clasico History
Real Madrid coach Santiago Solari had said earlier on Tuesday that he hoped Messi would be available. We have the player we believe is the best in world but they also have great players.

Alexandria Ocasio-Cortez spoke with UK's Jeremy Corbyn on the phone
The sexual-assault allegations were first reported by Big League Politics, the outlet that first published the yearbook image. Archila also said that she has "never felt so proud of voting for someone as when I voted for Alexandria".

Ariana Grande pulls out of Grammys 'over fights with show bosses'
Ariana was all set to perform but then had a disagreement with the show's producers over which songs she would perform. Grande also likely wants to use the platform to promote her new album " Thank U, Next ", featuring that track.

Wizards' Wall to have surgery on ruptured left Achilles
Wall, 28, had left heel surgery days into the new year after consulting with a foot specialist. The Wizards noted in their statement Wall suffered the rupture after a slip and fall at home.