Business News
U.S., China Sign Trade Deal Ease Tensions
The U.S. and China signed a so-called ‘Phase One’ deal on Wednesday thus putting on hold a trade war between the two economic giants but leaves in place massive tariffs on Beijing’s goods while also sidestepping some of the thorniest issues.
The trade war has roiled world markets and slowed global growth over the past two years.
The approximately 90-page deal includes Chinese promises to buy some 200 billion dollars’ worth of U.
S. products over two years and implement stronger rules on intellectual property.It also established a dispute resolution mechanism, which is meant to ensure the deal is enforceable, and provides further access to the Chinese market for U.
S. financial service providers.The U.S. said that if the sides could reach a more expansive Phase Two deal, Washington would roll back tariffs on hundreds of billions of dollars of Chinese imports.
The first phase leaves in place Washington’s tariffs on 370 billion dollars’ worth of Chinese imports, while reducing the tariff rate on some of those goods from 15 to 7.5 per cent.
Analysts also cautioned that some of the most difficult issues in the U.S.-China trade relationship remain unsolved, including Beijing’s subsidies programmes and use of government-run businesses.
Still, President Donald Trump hailed the “historic” agreement at a lengthy White House signing ceremony.
“Keeping these two giant and powerful nations together in harmony is so important for the world.
“The world is watching today.
“Together, we are righting the wrongs of the past,” Trump said, while stressing that he viewed the remaining tariffs as a negotiating tool.
China will buy 40 billion dollars in U.S. agriculture products “in line with market terms,” Chinese Vice Premier Liu He said at the ceremony, while noting that demand would also be a factor.
Trump has made closing the large trade deficit between the U.S. and China one of the goals of his administration.
He also has sought an end to abuses of U.S. intellectual property rights by Chinese companies along with forced technology transfers.
“We are not likely to see in this agreement any provisions addressing the key structural problems with China,” Jennifer Hillman, a trade expert at the New York-based Council on Foreign Relations, warned ahead of the ceremony.
Hillman cited Beijing’s use of subsidies to “prop up” companies that flood markets with goods and drive down prices among the practices.
Chinese President Xi Jinping, who did not attend the event in Washington, praised the deal, in a letter read out by Liu.
“In the next step the two sides need to implement the agreement in real earnest and optimize its positive impact,” Xi said.
“In that spirit, I hope the U.S. side will treat fairly Chinese companies and their regular trade and investment activities,” the letter added.
Senate Democratic leader Chuck Schumer said on Wednesday, “(The deal) is an extreme disappointment to me and to millions and millions of Americans who want to see us make China play fair.”
Chinese observers also feel like the deal, while halting a trade conflict that was spiralling out of control, may fail to serve China’s national interests.
Beijing might also find it hard to purchase the set amounts of U.S. agricultural, energy, and manufactured goods outlined in the agreement without alienating other countries, said Shi Yinhong, a professor of international relations at Renmin University.
“I think China has made a lot of concessions, and the implementation of the first phase of the agreement poses a considerable challenge,” he said.
Other countries have raised objections to the deal, saying it would force China to adopt a system of “managed trade” to the detriment of other nations, according to Joerg Wuttke, president of the European Chamber of Commerce in China.
The U.S. “wanted to have a real, comprehensive agreement also covering structural changes,” Wuttke said, “and they came up basically with a shopping list that China has to fulfil.”
China insisted the deal is compliant with World Trade Organisation rules. (dpa/NAN)
By Tony Obiechina, Abuja
The Commissioner for Insurance and CEO, Mr. Olusegun Ayo Omosehin, and his management team have met with the members of the Constitutional Committee on “Mobilisation and Diversification” of the Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC) led by Engr.
Sani Mohammed Baba, to explore ways of diversifying the Nigerian economy.During their working visit to NAICOM Headquarters, Mr.
Olusegun Ayo Omosehin, in his opening remarks, reaffirmed the critical role of the insurance sector regulator in supervising, regulating, and safeguarding the interests of insurance policyholders.He highlighted insurance’s pivotal role in mobilising savings for long-term developmental projects and enabling businesses to thrive while managing risks effectively.
He also stressed the Commission’s commitment to ensuring insurance companies meet their obligations, thus contributing to the sustainability of the economy.
Speaking, Mohammed Baba emphasised the importance of revenue generation, institutional expansion, and employment creation for Nigerians through collaborative efforts.
The Commissioner for Insurance also acknowledged President Bola Ahmed Tinubu’s ambitious goal of growing the Nigerian economy to One Trillion United States Dollars ($1 trillion) by 2026.
He expressed the insurance sector’s intent to significantly contribute to this objective. Additionally, he mentioned ongoing efforts to embed insurance within the National Credit Scheme to ensure its sustainability.
Omosehin stressed the need for continuous advocacy and sensitization of government institutions about the vital role of insurance in national economic development.
By Tony Obiechina, Abuja
The Central Bank of Nigeria (CBN) has activated plans to double foreign-currency remittance flows through formal channels by granting 14 new International Money Transfer Operators (IMTOs) Approval-in-Principle (AIP).
This was disclosed in Abuja on Wednesday, by the Bank’s Acting Director of Corporate Communications, Mrs.
Hakama Sidi Ali, who stated that the initiative will help increase the sustained supply of foreign exchange in the official market by promoting greater competition and innovation amongst IMTOs to lower the cost of remittance transactions and boost financial inclusion.She said, “This will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX), augmenting price discovery to enable a market-driven fair value for the naira.
“It will be recalled that the CBN Governor, Mr. Olayemi Cardoso, had recently declared: “We’ve set ourselves a target to double remittance flows into Nigeria within a year, a goal I firmly believe is within reach.
“We are wasting no time driving progress to remove any bottlenecks hindering flows through formal channels permanently. We have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with key stakeholders in the remittance industry,” she stated.
Continuing, Sidi Ali, said that the CBN viewed increasing formal remittance flows—one of the major sources of foreign exchange, accounting for over 6% of GDP—as a means of reducing the historical volatility in Nigeria’s exchange rate caused by external factors, such as fluctuations in foreign investment and oil export proceeds.
The increase in the number of IMTOs is one of the primary actions initiated by the CBN’s remittance task force, overseen by Governor Cardoso as a collaborative unit pulling together specialists to work closely with the private sector and market operators to facilitate the ease of doing business in the remittance ecosystem in Nigeria.
The task force was established as a direct result of an executive learning session with IMTOs during the World Bank/IMF Spring Meetings held in Washington DC, United States of America, in April 2024. The task force will meet regularly to implement strategy and monitor the impact of its measures on remittance inflows.
By Matthew Dadiya, Abuja
President Bola Tinubu has reassured investors in the energy sector of his administration’s resolve to further enhance the business environment and ensure investment convenience.
The President spoke Wednesday at the inauguration of three milestone projects, including the expanded AHL Gas Processing Plant; the ANOH Gas Processing Plant, and the 23.
3km ANOH – Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline.In a speech during the virtual inauguration of the projects at the State House, Tinubu also assured citizens that his administration is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas-fueled prosperity in the country.
The President, according to a statement by Special Adviser on Media and Publicity, Ajuri Ngelale, noted that the projects were fully in line with the Decade of Gas Initiative and his administration’s vision to grow value from the nation’s abundant gas assets, while concurrently eliminating gas flaring and accelerating industrialization.
“This event is highly significant to our country as it demonstrates the administration’s concerted efforts to accelerate the development of critical gas infrastructure geared at significantly enhancing the supply of energy to boost industrial growth and create employment opportunities.
“It is pleasing that when these projects become fully operational, approximately 500MMscf of gas in aggregate will be supplied to the domestic market from these two gas processing plants, which represents over 25% incremental growth in gas supply.
“In practical terms, this is more gas to the power sector, gas-based industries, and other critical segments of the economy. I, therefore, commend the strategic vision of the NNPC Limited and its partners, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy Plc, for this laudable and value-adding projects,” President Tinubu said.
The President said his government remains determined in its bid to leverage the nation’s vast gas capacity to drive economic growth.
“Aside from the presidential CNG initiative which is aimed at moving the good people of Nigeria away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivizing gas development through Presidential Directives.
“The theme of this inauguration – ‘From Gas to Prosperity; Renewed Hope’, must be adopted by all gas-sector participants and would-be investors as a clarion call to ramp up efforts to accelerate investment and developments of projects in the gas sector on a win-win basis.
“I would once again commend the efforts of NNPC Ltd, alongside SEEPCO and Seplat Energy, on this business partnership initiative, and congratulate you all on the successful implementation of the three projects,” the President said.
President Tinubu also reiterated his government’s resolve to continue to provide support in deepening domestic gas utilization, increase national power generation capacity, revitalize industries, and create multiple job opportunities for economic growth.
“Today, I have the singular honour to inaugurate the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3Km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects in line with my administration’s resolve to provide energy for Nigerians, and to use our vast natural gas resources to transform Nigeria,” the President stated.
May 15, 2024
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