A study conducted by the United Nations trade and development body UNCTAD has revealed that India gained roughly $755 million in additional exports to the U.S. in the first half of 2019, profiting from the U.S.-China tariff war. The trade diversion effects due to the trade war between the two economic powers stands at $21 billion for the first half of 2019, with countries like South Korea, Canada, and India being amongst the primary benefactors of the fallout.
To put these numbers in perspective, China lost $35 billion in exports this year in the U.S. market. Since $21 billion of the vacuum was filled by other countries, the remaining $14 billion was either lost or captured by local producers.
“The results of the study serve as a global warning. A lose-lose trade war is not only harming the main contenders, it also compromises the stability of the global economy and future growth,” said Pamela Coke Hamilton, UNCTAD’s director of international trade and commodities. “We hope a potential trade agreement between the U.S. and China can de-escalate trade tensions.”
Did you know?
In the first nine months of the year, U.S. exports to China are down 15.5% compared with the same period a year ago, a bigger drop than the 13.5% decrease for Chinese imports.
“Cities are waking up. They’re realizing they need to have a handle on this industry.”
– Meera Joshi, the outgoing commissioner of the New York City Taxi and Limousine Commission, commenting on cab-hailing companies like Uber facing the heat as city regulations grow stricter every day.
In other news
OPEC braces for drastic drop in oil demand
OPEC admitted that demand for its oil over the next few years could be drastically weaker than it previously thought, due to a combination of a weakening economy, rising supply elsewhere, and pressure from climate activists. (Oilprice)
Germany’s automotive industry slump is responsible for global economic slowdown
Germany’s prized automotive industry is having a profound impact as the global economy faces its sharpest slump since the financial crisis. (Express)
Blackstone and Prologis battle for fast-shipping leadership
Investment firm and logistics company accumulate millions of square feet in warehouse space. (WSJ)
India open to joining RCEP trade deal if all demands met, says Piyush Goyal
India on Monday decided against joining the RCEP trade deal, holding that it did not receive any credible assurance on market access and non-tariff barrier. (LiveMint)
Coca Cola franchises to benefit from blockchain-powered supply chain
As the largest beverage company in the world, it is understandably an incredibly complex task to manage the huge number of partners, franchises and Coca-Cola product manufacturers around the world. (Be In Crypto)
The change in rhetoric within the auto industry towards the electric car segment over the last decade has been a fascinating spectacle. In many ways, Tesla played a vital role in fanning consumer interest towards the electric car market by disrupting the way the auto industry worked.
Unlike legacy auto makers, Tesla did not bank heavily on dealerships, selling its cars directly to consumers. Tesla also maintained strict control over the number of variants it pushed out, which led to its car model launches becoming events that were as widely anticipated as iPhone launches. Tesla pushed the concept of connected and smart cars to never before seen levels, also providing autopilot possibilities in some of its high-end cars.
Tesla was amongst the earliest proponents of data analytics, amassing billions of data points from its cars, leveraging it now in its self-driving program. Meanwhile, incumbent automakers like Volkswagen or Daimler failed to realize the threat of electrification to their combustion engine vehicles early on, and are still playing catch up with Tesla, which sits well on top as the market leader of a segment that has just started sprouting wings.
Hammer down everyone!