JAKARTA (TheInsiderStories) – Good morning! After almost reaching a trade deal with China, United States now gives trade pressure to India and Turkey. The Uncle Sam country intends to scrap the preferential trade status granted under the Generalised System of Preferences (GSP) to both countries, based on President Donald Trump’s direction.
Under the GSP program, certain products can enter the US duty-free if countries meet eligibility criteria including providing the country with equitable and reasonable market access. Washington considered India and Turkey are no longer comply with the statutory eligibility criteria.
India has implemented a wide array of trade barriers that create serious negative effects on America’ commerce, while Turkey has grown and diversified, also graduated from other developed countries’ GSP programs.
Ending India’ participation would be Trump’ strongest punitive action against New Delhi since he took office in 2017. Moreover, India is the world’s largest beneficiary of the GSP program. It exports US$5.6 billion worth of goods to the US duty-free.
Responded the move, a top Indian trade official said New Delhi does not plan to impose retaliatory tariffs on US goods, as the withdrawal would only have limited impact. The action taken amid the calming tense as US is near to reach trade deal with China.
Trade war with the US has became one of the reasons for China to cut it economic growth target this year. China is now targeting its economic growth in a range of 6-6.5 percent. Previously, the target was around 6.5 percent.
By this, China will have it lowest record economic growth in almost 30 years. The risk taken as a consequence in prioritizing debt risk management and decrease poverty rate. Other than that, China also announced tax cut for 2 trillion Yuan.
While, Bank of England (BoE) reminded that Europe may face a serious risk of no-deal Brexit takes place. The central bank stated: “Some disruptions to cross-border services may occur and, without other actions from EU authorities, some potential risks to financial stability remains.”
As known, United Kingdom (UK) will officially leave European Union on March 29. But until now, the Brexit clauses haven’t yet been agreed by the parliament due to Ireland backstop issue. According to UK Secretary of State for Foreign and Commonwealth Affairs Jeremy Hunt, the EU has given a positive signal to change Brexit proposal to be accepted by UK parliament.
Yesterday, Energy and Mineral Resources ministry approved BP planned to sell 84 liquefied natural gas (LNG) cargoes to Singapore, said director general of oil and gas at the ministry Djoko Siswanto. Until 2025, Indonesia has 40 excess cargoes of LNG, he added.
On the capital market, Rupiah continued to not showing any uptrend. So did the capital market. The Jakarta Composite Index fell by 0.72 percent to 6,441.28 with Rp1.16 trillion foreign outflow recorded. All sectors but miscellaneous industry showed declines.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information About Indonesia