Farmscape for December 5, 2018
A truce reached between the United States and China during last week's meeting of the G20 offers hope that an escalation of trade tensions between the two nations will be averted.
The Presidents of the United States and China met Saturday following the 2018 meeting of the G20.
Colin Robertson, the Vice-President and a Fellow of the Canadian Global Affairs Institute, says that meeting yielded encouraging results.
Clip-Colin Robertson-Canadian Global Affairs Institute:
Both President Trump and President Xi Jinping declared a truce and Donald Trump said there will be a 90 period now under which the Chinese and Americans will try to negotiate an end to what has been effectively a low level trade war with both sides applying huge tariffs to each other and the threat of even more tariffs.
It's had a chilling effect on China where there's some other challenges going on as well.
In the American economy there are a lot of complaints from, particularly, the farm community who have found their markets disrupted and China buying for example agricultural products from other nations because of the high tariff that the Chinese have put on American products.
Overall disruptive and having a collateral effect on the global economy, including Canada because when you interrupt supply chain dynamics which have been in place now for 10 to 15 years everybody suffers including Canada because we're part of a global supply chain.
There are parts from Canada that would go into the manufacture of say computers and parts from China.
If you interrupt it means that the production lines don't proceed.
If the actual final assembly is taking place in the United States and everything gets held up, that has a knock on effect on innocent parties like Canada.
Robertson says an effort will be made to sort out things intellectual property theft, cyber theft and increased Chinese buying of American goods.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork