The US and Japan started trade talks in the 1980s, and a deal was signed last month. There have been deals along the way but keep in mind that markets open slowly, over decades of negotiations.
There will be promises of a big deal, and changes down the road but there are few details on the “historic” trade deal that the US and China signed this past week. “This deals with intellectual property, this deals with technology transfer, it deals with structural agricultural issues, financial services opening up, currency understandings, as well as a commitment to purchase US agriculture and US goods,” said US Treasury Secretary Steven Mnuchin. The US is now saying that it is not pushing back or rolling back the rules-based trading system, saying that it only wants a level playing field. For now, the US and China are now working toward a timescale to sign the agreement as US Trade Representative Robert Lighthizer suggested there may be a signing ceremony in Washington in January. This seems to be some progress on the 18-month Trade War which has, for now, averted the next round of US tariffs. Many market analysts are in agreement, this deal will eventually have strong impact on trade and boost the world economy as well as stock markets. But the trade deal is the first step in a long, protracted trade war…..it could last decades.