JAKARTA (TheInsiderStories) – Good morning! United States (US) and China trade talks is now making the most significant progress. Both economic superpowers have started outline their commitment to seal the trade deal.
Its reported, negotiators are now drawing up six Memorandums of Understanding (MoU) on structural issues, forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture, and non-tariff barriers to trade. The MOUs cover the most complex issues affecting the trading relationship between the two countries.
But the talks remain far apart from US President Donald Trump’ demands that ask structural changes to China’ economy. Even so, the broad outline could make up a deal, as the deadline has been extended for 60 days to May.
China is proposing to buy an additional US$30 billion a year of US agricultural products including soybeans, corn, and wheat. The purchase offering would be part of the MoU. Officials are also planning to discuss removing anti-dumping and anti-subsidy tariffs on distillers dried grains.
Followed the trade deal progress, South East Asian countries has been badly impacted by the US-China trade war. Asian Development Bank stated, ASEAN five biggest countries, Indonesia, Malaysia, Philippines, Singapore, and Thailand’ economic growth accumulatively rose only 4.8 percent last year.
While in 2017, economic growth of those 5 countries were 5.1 percent. There were many challenges faced by ASEAN countries last year, such as US-China trade war and currencies depreciation.
Last year, Singapore’ economic growth experienced a slowdown for the first time in the last three years. Singapore’s Gross Domestic Product (GDP) increased by 3.2 percent in 2018, lower than 3.9 percent in 2017. Other than that, Singapore’s manufacture and trade were also slumpung. The condition showed that Singapore relates much to the US-China trade war.
While, Indonesia will soon decide the Concession Agency of Batam Free Port and Free Trade Zone management. Recently, the agency management is still unclear due to dualism issue.
Coordinating Minister for Maritime Luhut Binsar Pandjaitan said that government is now searching the management format. He expects that the solution will be reached in six months maximum.
Moreover, Bank Indonesia considered Rupiah has been moving in a range of Rp14,000-14,000 lately. Though, the central bank considers that the recent position is still undervalue. Good sentiment blew to stocks market, as Jakarta Composite Index closed increasing by 0.38 percent to 6,537.76 with Rp351.12 billion (US$25.08 million) foreign net buys.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia