Modi looks inward on trade
The Indian government has taken a protectionist posture on trade, taking measures to boost domestic manufacturing, hike tariffs and stall trade negotiations. Yet exports have failed to increase, in part because of red tape and poor logistics. The administration’s present attitude could see India struggle with the current account deficit and increasingly get shut out from overseas markets, unless a growing corporate sector can lobby for change.
Modi’s economy faces the voters
The Modi government in India enters the last year of its term with mixed economic results. The prime minister has moderated inflation and carried out important reforms, but growth remains slow and many Indians are pessimistic about their financial situation. With elections coming next April and several external threats on the horizon, a second term for Narendra Modi is in doubt.
Trade wars: the options for Europe
Although U.S. President Donald Trump maintains that he believes in free trade, his preferred policy tool continues to be protectionism. So far, Europe has relied on cosmetic retaliation and little else. But it could do more. For example, the EU could engage in aggressive free trade or seek bilateral deals, especially with big global partners. President Trump would be left with few justifications for keeping trade barriers in place, and Brussels would acquire prominence on the world stage.
GIS Dossier: China’s Belt and Road Initiative
In 2013, China launched the Belt and Road Initiative (BRI), a huge infrastructure-building project that includes investments in roads, railways and ports spanning three continents and two oceans. While Beijing claims the BRI is purely an attempt to better connect China with key markets, it is clearly using the investments to gain geopolitical leverage. This Dossier brings together GIS experts’ analysis of how China is using the BRI to build its influence, and how countries around the world are reacting.
GIS Dossier: Trumponomics
Eighteen months into his presidency, Donald Trump has already implemented several major economic initiatives, including big tax cuts and rewriting American trade policy. Neither the disaster foreseen by his critics nor the miracle envisioned by his supporters has materialized. Instead, there has been a mix of positives and negatives for the U.S. economy, just as GIS experts had predicted since the election. This GIS Dossier reviews the unexpected consequences of “Trumponomics” and the impact it is likely to have in the future.
Where the United States and global trade are heading
The U.S. is the world’s largest open economy and pillar of the global trading system. Yet its economic challenges today – government debt, wealth inequality, and labor force participation – cannot be reliably addressed through more open trade. One should therefore expect more U.S. steps to change the terms of trade and pressure leading exporters over the next two years.
The effects of U.S. trade policy in the Pacific
The Trump administration has made a big splash with its trade policy. The effects are already being seen in the Pacific region, after Washington’s decision to pull out of the Trans-Pacific Partnership, renegotiate the U.S.-Korea Free Trade Agreement and slap tariffs on steel and aluminum imports. Whether President Trump’s aggressive approach remains intact or if it is softened by free traders in the administration, the U.S. is likely to be marginalized while China will benefit.
GIS Dossier: China dominates the rare earths supply chain
The unique chemical and physical properties of rare earth elements make many cutting-edge technologies possible. China is richly endowed with the resource and once attempted to corner the REEs market. Beijing’s predatory policy was thwarted by the WHO and the global economic slowdown, but the West’s efforts to develop alternative supply sources have come up short.
2018 Global Outlook: The Euro-Atlantic relationship
The transatlantic relationship can be described as a family matter – with the United States as the mostly benevolent patriarch and Europe as the dependent relatives. Relations had been cooling for at least a decade, but this process is being expedited by the presidency of Donald Trump. Both sides seem to agree that Europe needs to grow up and take charge of its own destiny. If so, we could be headed for a stormy late adolescence.