Onye Nkuzi
Twitter: @cchukudebelu
Christian, Igbo, Nigerian, African. A complex personality, not a stereotype – Western Media take note. An admirer of M.I. Okpara – an unsung Nigerian hero.
US trade deals with Japan and South Korea were remarkably brief. US has the consumer market, Japan and South Korea are exporters – so US basically told them what to do, and they complied.
Interestingly, US spent a lot more time negotiating with Mexico.
It is easy to understand why. Mexico’s demographics are healthy, it doesn’t compete with the US (isn’t yet a high-value manufacturer). So US is both interested in Mexico’s industrial output and its consumer market – and Mexico is just across the border.
Once US and Mexico agreed on the outlines of their trade deal, Canada had to fall in line. Canada has aging demographics (one reason why they are so keen on immigration) – and since they produce high value products, US also sees them as a competitor.
As for Britain, there’s nothing Britain produces that the US does not produce, so US sees Britain as an economic competitor. London’s City competes with New York’s financial district – and US will do what it can to put New York at an advantage over the City.
I’m not sure there’s going to be much of a negotiation between the US and UK. The US will simply tell the UK what to do, and they will comply. The best hope for the UK is that the terms will be favorable.
US is a $20 trillion economy, while UK is a $2.6 trillion economy.
You can follow @cchukudebelu. Feb, 24, 2020