Trump hails ‘momentous’ US-China trade deal at White House signing

Trump hails ‘momentous’ US-China trade deal at White House signing
US President Donald Trump and China’s Vice Premier Liu He, the country’s top trade negotiator, hold a press conference before they sign a trade agreement with the US and China during a ceremony in the East Room of the White House. (AFP)
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Updated 16 January 2020

Trump hails ‘momentous’ US-China trade deal at White House signing

Trump hails ‘momentous’ US-China trade deal at White House signing

WASHINGTON: President Donald Trump on Wednesday described an initial trade agreement with China as “momentous” and “righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families.”

"Today, we take a momentous step, one that's never taken before with China," that will ensure "fair and reciprocal trade," Trump said at the White House signing ceremony.

The president signed a trade agreement with China that is expected to boost exports from US farmers and manufacturers and ease trade tensions between the two countries going into November’s presidential election.

For Trump, the White House ceremony gives him the opportunity to cite progress on a top economic priority on the same day that the House votes to send articles of impeachment to the Senate for a trial.

Trump and China's chief trade negotiator, Liu He, signed the modest agreement. It is intended to ease some US economic sanctions on China while Beijing would step up purchases of American farm products and other goods. The deal would lower tensions in a fight that has slowed global growth, hurt American manufacturers and weighed on the Chinese economy.

But the “Phase 1” agreement would do little to force China to make the major economic changes such as reducing unfair subsidies for its own companies that the Trump administration sought when it started the trade war by imposing tariffs on Chinese imports in July 2018.

Larry Kudlow, Trump’s chief economic adviser, said the agreement vindicated the president’s strategy of using tariffs in trade negotiations, though not in every instance. “I think with China he was exactly right,” Kudlow said. ”I think the tough tariffs hurt their economy and made them much more amenable to a good deal.”

Most analysts say any meaningful resolution of the main U.S. allegation — that Beijing uses predatory tactics in its drive to supplant America's technological supremacy — could require years of contentious talks. Skeptics say a satisfactory resolution may be next to impossible given China's ambitions to become the global leader in such advanced technologies as driverless cars and artificial intelligence.

This first phase “hardly addresses in any substantive way the fundamental sources of trade and economic tensions between the two sides, which will continue to fester,” said Eswar Prasad, a Cornell University economist and and former head of the International Monetary Fund's China division.

The thornier issues are expected to be taken up in future rounds of negotiations. But it’s unclear when those talks might begin, and few observers expect much progress before the U.S. presidential election in November.

“Phase 2 -- I wouldn’t wait by the phone,’’ said John Veroneau, who was a U.S. trade official when George W. Bush was president and is now co-chair of the international trade practice at the law firm Covington & Burling. “That is probably a 2021 issue.’’

The US has dropped plans to impose tariffs on an additional $160 billion in Chinese imports, and it cut in half, to 7.5%, existing tariffs on $110 billion of good from China.

Beijing agreed to significantly increase its purchases of U.S. products. According to the Trump administration, China is to buy $40 billion a year in U.S. farm products — an ambitious goal for a country that has never imported more than $26 billion a year in U.S. agricultural products.

The deal may be most notable for what it doesn't do. It leaves in place tariffs on about $360 billion in Chinese imports — a level of protectionism that would have been unthinkable before Trump took office.

Beijing’s retaliatory tariffs affect more than half of American exports to China. The average U.S. tariff on Chinese imports has risen from 3% in January 2018 to 21% now.

The administration argues that the deal is a solid start that includes Chinese commitments to do more to protect intellectual property, curb the practice of forcing foreign companies to hand over sensitive technology and refrain from manipulating their currency lower to benefit Chinese exporters. In advance of Wednesday's signing, the Treasury Department on Monday dropped its designation of China as a currency manipulator.

By maintaining significant tariffs on Chinese imports, the administration retains leverage to force Beijing to abide by its commitments — something the United States says Beijing has failed to do for decades.

The administration contends that however narrow the first phase may be, it represents a significant breakthrough.

Derek Scissors, China specialist at the American Enterprise Institute, said the trade war has already delivered a benefit for Trump, even if it hasn’t forced Beijing to make major changes to its economic policy: Trump’s tariffs have reduced Chinese exports to the United States and narrowed America's trade deficit with China.

The president has long lambasted the U.S. trade gap with Beijing as a sign of economic weakness, though many economists disagree. A wide trade deficit can actually reflect economic strength because it means that a nation's consumers feel prosperous and confident enough to spend freely — on imported goods as well as on home-grown goods.

So far this year, the US deficit with China in the trade of goods has declined by 16%, or $62 billion, to $321 billion compared with a year earlier. The deficit will narrow further if Beijing lives up to its pledges to buy dramatically more American imports.

Trump’s tariff increase have proved to be a headwind for China's economy, which was already slowing, though the damage has been less than some expected. Chinese global exports eked out a 0.5% increase in 2019 despite a plunge in sales to the United States, according to Chinese customs data.

Chinese exporters responded to Trump’s tariff hikes by shipping goods to the United States through other countries and by stepping up sales to Asia, Europe and Africa. The government reported double-digit gains in 2019 exports to France, Canada, Australia, Brazil and Southeast Asia.

Economists said the tariff war slowed Chinese growth, which hit a multi-decade low of 6% in the quarter ending in September, by as little as 0.6 percentage point. Weak domestic demand and the cooling of a construction boom inflicted more damage.


Finance giant Fitch partners with SIDF Academy for Saudi talent program

SIDF Academy has more than 47 years’ experience in training employees in the finance, technology, industry, mining, energy and logistics industries. (File Photo)
SIDF Academy has more than 47 years’ experience in training employees in the finance, technology, industry, mining, energy and logistics industries. (File Photo)
Updated 13 min 23 sec ago

Finance giant Fitch partners with SIDF Academy for Saudi talent program

SIDF Academy has more than 47 years’ experience in training employees in the finance, technology, industry, mining, energy and logistics industries. (File Photo)
  • Fitch Learning: Scheme will ‘set professionals on fast track for success’
  • SIDF Academy: ‘Collaboration represents major step on path to train, develop keen talent’

LONDON: Fitch Learning, the knowledge and training arm of global financial leader Fitch Group, has announced a partnership program with the Saudi Industrial Development Fund (SIDF) to boost financial education in the Kingdom.

The delivery of the Certified Investment Financing Professional (CIFP) training program will “enrich the financial skills of local talent,” and “provide them with a better insight into the increasingly complex global financial landscape,” Fitch Learning said in a statement.

The program will be delivered in cooperation with SIDF Academy, which aims to build knowledge in key sectors in line with Saudi Arabia’s industrial vision.

It will “allow CIFP participants to keep pace with the Saudi economy, and also offer them a pathway to building global expertise and qualifications,” Fitch Learning said.

The CIFP program will target employees in the finance, credit and investment industries. It will include three levels with 18 distinct training modules, including financial accounting, financial analysis, lending, business development and financial modeling.

“Saudi Arabia is a key strategic market for the Fitch Group, and we are delighted to play a key role helping the Kingdom enrich financial training skills across the Kingdom,” said Fitch Learning CEO Andreas Karaiskos.

“We will deliver exactly the right international financial certification opportunities via our CIFP program to set professionals on the fast track for success.”

SIDF Academy Director Dr. Kholod Ashgar said: “We are proud to be working together with Fitch Learning, a leading global provider of professional development courses for the financial services industry, to deliver this CIFP program via SIDF Academy.

“This collaboration represents a major step on our path to train and develop our keen talent to stimulate future prosperity, jobs and growth in this vital sector of the Saudi economy.”

SIDF Academy has more than 47 years’ experience in training employees in the finance, technology, industry, mining, energy and logistics industries.

In 2019, SIDF was aligned with Saudi Arabia’s Vision 2030 reform plan, enabling the fund to play a vital role in shaping the Kingdom’s future. 


Abu Dhabi issues major schools and lighting PPP tenders

The Abu Dhabi Investment Office (ADIO) has advertised the procurement of the schools. (Shutterstock/File Photo)
The Abu Dhabi Investment Office (ADIO) has advertised the procurement of the schools. (Shutterstock/File Photo)
Updated 29 min 48 sec ago

Abu Dhabi issues major schools and lighting PPP tenders

The Abu Dhabi Investment Office (ADIO) has advertised the procurement of the schools. (Shutterstock/File Photo)

RIYADH: Abu Dhabi is seeking private sector partners for three new schools and a street lighting project.

The Abu Dhabi Investment Office (ADIO) has advertised the procurement of the schools and phase 2 of its street lighting upgrade program, WAM reported.

Potential bidders can now submit expressions of interest.

“Collaboration with the private sector is an integral part of the Abu Dhabi leadership’s vision to drive long-term economic growth in the emirate. In 2020, ADIO laid the foundations to supercharge collaboration between business and government,” said the director-general of ADIO, Tariq Bin Hendi.

The Zayed City Schools PPP project will provide three new schools with a capacity of 5,360 students in Abu Dhabi’s Zayed City.

The contract will include the design, build, finance, maintenance and transfer of three schools with a concession period of 22 years, inclusive of a construction period of 24 months and a maintenance period of 20 years.

Phase 2 of the Street Lighting LED PPP program will see approximately 140,000 of the emirate’s streetlights replaced with energy-efficient LED technology.

This will offer a 76 percent reduction in their power consumption — equivalent to cost savings of 705 million dirhams — and will be structured as a 12-year concession agreement with the Department of Municipalities and Transport (DMT).

ADIO is the central Abu Dhabi government authority with responsibility for delivering infrastructure projects through a PPP framework.


Saudi Arabia’s biggest gym chain swings to loss

Saudi Arabia’s biggest gym chain swings to loss
Updated 20 April 2021

Saudi Arabia’s biggest gym chain swings to loss

Saudi Arabia’s biggest gym chain swings to loss
  • Operates 135 gyms in UAE and KSA
  • Pandemic has hit fitness sector hard

DUBAI: Saudi Arabia’s biggest gym chain swung to a first quarter loss as the pandemic forced the closure of thousands of fitness clubs worldwide.
Leejam Sports Company reported a net loss of more than SR6.9 million in the first quarter compared to a profit of SR6.2 million a year earlier, it said in filing to the Tadawul stock exchange where its shares are listed.
Overall revenues dipped by about a quarter over the period to SR148.5 million, it said.
Total gym memberships, personal training revenues and rental income fell by more than SR49 million as a result of gym closures in the Kingdom from Feb.5, 2021 to March 6, 2021, it said.
Meanwhile the need to apply precautionary measures in response to the pandemic reduced the number of members joining the clubs.
Leejam operates some 135 Fitness Time centers in Saudi Arabia and the UAE.


‘Many more airlines will go under’ Qatar Airways boss tells CNN

‘Many more airlines will go under’ Qatar Airways boss tells CNN
Updated 20 April 2021

‘Many more airlines will go under’ Qatar Airways boss tells CNN

‘Many more airlines will go under’ Qatar Airways boss tells CNN
  • Qatar Airways CEO Akbar Al-Baker gave a bleak assessment of the challenges facing the industry as it struggles to recover the collapse in global air travel

DUBAI: Qatar Airways CEO Akbar Al-Baker has warned that many more airlines will be forced out of business by the pandemic.
In an exclusive interview on CNN’s Quest Means Business, Qatar Airways CEO Akbar Al-Baker gave a bleak assessment of the challenges facing the industry as it struggles to recover the collapse in global air travel.
“By the time this pandemic is over, there will only be few airlines that are strong and will continue operating,” he said. “A lot of other airlines will go under. And this will continue to happen, because we have not seen the worst of it over yet.”
He said that returning the airline industry to full strength should be a key priority to boost the global economic outlook.


“If this pandemic prolongs for too long, this will completely destroy the world’s economy which is so dependent on airlines for delivering business, carrying freight around, and most importantly creating jobs,” he said.
The outspoken airline chief highlighted some of the safety measures adopted by the airline and its hub at Hamad International Airport in Doha.
These include high-tech temperature sensors, ultraviolet disinfectant processes, and mask-wearing on flights.
He also spoke about the process of asking the company’s shareholders – the Qatari government – for a cash injection during the pandemic, “I couldn’t just jump the queue and go and tell my boss, the ruler of my country, that our situation is so dire, and this is what we need. Because I am sure there were a lot of other people in the queue before me telling him the same thing.”

The CEO also spoke about access to vaccinations and mitigating the risks amid the slow roll out of vaccines in some countries. He told Quest, “It will be a problem for the aviation industry. And we will have to work a way within this risks that we will have to take. But we will have to do things, we'll have to put processes, we'll have to put systems in place to mitigate that risk.” A resurgence of the coronavirus in many countries in recent weeks is threatening to quash some positive signs that had been slowly emerging from the sector. At the same time many passengers are reluctant to fly even where permitted, because of safety concerns and confusion over the different vaccination, testing and quarantine requirements of different countries. Industry body IATA has been trying to address that challenge with its trial Travel Pass initiative aimed at informing passengers about what tests, vaccines and other measures they require at their destinations.

Eni helps UAE emirate of Ras Al-Khaimah look for natural gas

Eni helps UAE emirate of Ras Al-Khaimah look for natural gas
Updated 20 April 2021

Eni helps UAE emirate of Ras Al-Khaimah look for natural gas

Eni helps UAE emirate of Ras Al-Khaimah look for natural gas
  • Eni is already present in Ras Al-Khaimah operating Offshore Block A

DUBAI: Italian energy giant Eni is helping the UAE's northernmost emirate explore for gas.

Its Eni RAK unit has struck an exploration and production agreement with Ras Al-Khaimah Petroleum Authority, the Italian company said in a statement.
The agreement relates to "Block 7" which covers an area of 430 square kilometers. Eni RAK will act as operator of the block with a 90 percent participating interest and Ras Al Khaimah’s national oil company RAK Gas as a partner, with a 10 percent stake.
"Block 7 represents an under-explored acreage in a complex thrust belt geological setting, similar to that of the recent discovery of Mahani in the adjacent Sharjah Emirate," Eni said in a statement.
"The newly acquired 3D seismic will allow the joint venture to assess the geological setting of the area and eventually unlock its hydrocarbon potential. The presence of the existing gas processing facilities in the emirate would also allow a rapid development of any discoveries."
Eni has been involved in a number of gas finds in the Middle East in recent years, most notably in Egypt and the Eastern Mediterranean where the discoveries have ushered in dramatic economic transformations.
Eni is already present  in Ras Al-Khaimah operating Offshore Block A where, after an initial geological and geophysical study period, preparations for drilling operations have started, it said.
The company holds the largest exploration acreage among the international oil companies present in the UAE covering more than 26,000  square kilometers.