Good and bad on trade

(Aug 29): Fears of a global trade war, led by America, have diminished. The issue is compressing into a conflict between China and the US, perhaps reflecting growing superpower rivalry as much as pure economic tension. China is already taking steps to offset the impact.

A couple of months ago there was the risk of a trade war on three fronts: NAFTA, the EU (or automobiles) and China. The first two of these seem to have reached a truce.

After the visit of European Commission President Juncker to Washington in late July there was an ill-defined agreement to try to find an agreement. Despite the lack of specifics, the risk of a major trade conflict, centred on automobiles, appears to have faded for the moment.

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