Question

The Wall Street Journal (June 26) reported, "President Trump and Chinese President Xi Jinping will seek to revive troubled U.S.-China trade talks this week, in a test of whether their professed personal chemistry can surmount seemingly intractable differences at the bargaining table. . . . “This is going to come down to whether these two individuals can work with each other, manage the politics of this, so that the differences on substance can be bridged,” said Clete Willems, a former Trump White House economic official. "

1. Do you think threats work well in trade negotiations?

2. Is subjectivity in trade negotiations preferable to objective approach?

3. Do you think leadership is essential for advancing peaceful global trade?

Answer 1

a) Trade is a not only exchange of goods but it also involves exchange and imposition of trust between two countries. Hence a smooth sailing of trade between two countries can only take place if they have trust on each other. If China and US keep on the game of threats and tariff increase, it will not only ruin bilateral ties but can be disastrous. As the trade war increases, global economy will topple.

b) Trade negotiations not include the objective nature of "buying and selling". Since time immemorial great ties and relations have thrived between countries and communities based on trade relations. Hence just objective approach to the trade negotiation is not beneficial and there should be an inclusion of subjectivity in negotiation.

c) Every economic metrics or mathematical calculation is worthless if the correct brain behind leveraging those is not in use. The leadership of any country counts as a major factor to enable peaceful global trade.