US Secures Trade Deal With South Korea as China Pledges Open Markets
March 27, 2018
Dodd-Frank rollback stalls in House; President Trump secures trade deal with South Korea; China pledges open markets to avert US trade war.
- Dodd-Frank rollback stalls in House. While the US Senate passed sweeping bipartisan deregulation of the financial sector this month, Speaker Ryan is refusing to call a vote until senators agree to add on a number of house-sponsored reforms to the legislation. Senators are resisting the pressure, arguing those reforms could jeopardize the bill’s passage and its bipartisan appeal. Industry lobbyists have expressed concerns that a drawn-out stalemate could run out the clock on the legislation, with midterm elections mere months away, and have upped pressure on lawmakers to pass a bill. The Senate legislation passed 67-31, despite criticism from the Democratic party’s left wing, but more extreme policies in the House bill coupled with pressure from the Democratic party’s progressive wing could upset the political balance should the Senate have to vote again. [The Hill]
- President Trump secures trade deal with South Korea. The deal, announced Monday, has Seoul agreeing to reduce steel exports and open its market to American cars in exchange for an exemption from the President’s global tariffs on steel and aluminum. The deal comes after fears that the tariffs could cause a global trade war, prompting unease in financial markets around the world. The South Korean Trade Ministry said that it would agree to adhere to a quota of 2.68 million tons of steel exports to the US per year, amount to roughly 70 percent of its annual average sale to the US from 2015 through 2017. In return, South Korea would be exempt from the steel tariffs. [NYTimes]
Economic Indicators & News
- China pledges open markets to avert US trade war. Premier Li Keqiang said Monday that China and the US should maintain ongoing trade negotiations, and that China would focus on efforts to open markets to American businesses. Stocks rose on the announcement, which averted fears of a US-China trade war. The Premier also indicated the government would not force foreign firms to transfer technology and would strengthen support for proprietary intellectual property in China. [CNBC]