Trade

The UK agreement

A new free trade agreement with the UK allows New Zealand to remove export tariffs during the next 15 years. This deal promises a GDP boost of up to $1 billion.

On top of the economic elements, the agreement includes conditions for the environment, tackling climate change and creating equity in economic advancement. According to New Zealand Prime Minister, Jacinda Ardern, it is the country’s “first bilateral trade agreement to include a specific article on climate change”. 

In late April, the Indonesian government announced a temporary ban on exports of crude palm oil and its refined products, such as cooking oil. The decision came as a surprise to commercial goods traders as the government had previously stated the ban would only apply to refined products. After the government’s initial statement, prices of crude palm oil significantly fluctuated given uncertainties about what products the ban would cover. Prices have again skyrocketed in light of the most recent announcement.

Steep tariffs, challenging geography and government subsidies come to mind when we think about the barriers to international trade. But there are lots of different languages in the world, and translation problems can slow things down, too.

The European Union and Japan signed a monumental trade deal in, July 2018, eliminating nearly all tariffs between the entities in one of the world’s largest free-trade deals. The pact, signed in Tokyo, covers a third of the global economy.

The agreement is in stark contrast to President Donald Trump’s trade war and alignment with Russian President Vladimir Putin. Although the leaders didn’t mention him by name, Japanese Prime Minister Shinzo Abe and EU leaders Donald Tusk and Jean-Claude Juncker distanced themselves from Trump’s tactics in a press conference following the deal.

Every day, we use products that are built using “rare earths”—a group of 17 elements that are, as the name suggests, very rare. They’re used to make everyday items such as rechargeable batteries, LED lights and display panels, as well as larger products such as wind turbines.

Now, it turns out, Japan has an estimated 16 million tons of the stuff on its turf. Researchers claim the trove might be enough to supply the world with metals such as yttrium and europium on a “semi-infinite basis.”

The Japanese government has asked the Chinese government to loan Japan more giant pandas. Amid the growing popularity of the giant panda cub Xiang Xiang, who is on public view at Ueno Zoo in Taito Ward, Tokyo, the Japanese government hopes to realize the loan as soon as possible as a symbol of improved relations between Japan and China.

A Russian politician proposed labeling American fast food chains like McDonald's and KFC as foreign agents, following recently passed legislation which provides the same classification for international news outlets.

 On more than 445 hectares of land dedicated exclusively to Japanese corporations, titans such as Toyota Motor Corp., Daikin Industries Ltd. and Hitachi Ltd. have clustered together to protect themselves from the vagaries of India’s chaotic business landscape.

“In India, the size of investment matters,” said Takayoshi Tokimune, the managing director of the India subsidiary for Dainichiseika Color & Chemicals Manufacturing Co. “So we flocked together.”