HOW IS PRESIDENT TRUMP SHAPING GLOBALIZATION?

The report I’m going to talk is about a very controversial topic nowadays which is the globalization that is happening in the world. Globalization is the process of interaction and integration among people, companies, and governments worldwide. As a complex and multifaceted phenomenon, is considered by some as a form of capitalist expansion which entails the integration of local and national economies into a global market economy. During the years, has grown due to advances in transportation and communication technology. Globalization is primarily associated with social and cultural aspects. However, conflicts and diplomacy are also large parts of the history of globalization, and modern globalization. This process is changing the world, so my question is how is the president of the one of the most powerful countries in the world dealing with that? 

As we know, Donald Trump is the president of United States of America, which nowadays is the first potential country in the world. His administration started at January 10 of 2017. From that point forward, the Republican president did approaches including the reversion of trade liberalization as opposed to address fundamental reasons of the economic problems. Trump vowed to reject multilateral economic agreements (which involve three or more countries without discrimination between those involved) and arrange new bilateral deals (whereas this agreements consist between two countries) “to promote American industry, protect American workers, and raise American wages.” 

The Trump presidency’s negotiating strategy has caused a significant decrease in the bilateral trade deficit, stringing to singularly force high taxes on imports from major U.S. exchanging partners, such as, China or Mexico. In the case of China, the US has agreed at October 11 to end the commercial war started last year. The US chose to suspend its arrangement to raise tariffs on Chinese imports from 25% to 30%, while China vowed to acquire somewhere in the range of $40,000 and $50,000 million in US agricultural products.

On the other hand for Mexico, in return for the US to postpone the burden of duties, which would have begun at 5%, yet supposedly could have arrived at 25%, Mexico will embrace solid measures to decrease or dispense with illegal immigration that reaches its country heading north of the continent. 

Another movement is the renegotiation of the NAFTA. The fate of US-Mexico-Canada exchange relations is still uncertain. For quite a long time Trump thrashed the North American Free Trade Agreement (NAFTA) as “the worst trade deal in the history of the country.” He praised the push to set up another United States Mexico Canada Agreement (USMCA) as a major accomplishment. The new deal changes the NAFTA in 6 ways:

1. Auto companies must manufacture at least 75% of the car’s component in the NAFTA’s country, being perviously the 62,5%. These progressions should create more U.S. occupations for autoworkers. However, the increase of labor costs could turn out making them excessively costly for the Chinese market, in the same way as for the American.
2. Canada must open up its dairy market to U.S. farmers.
3. Mexican trucks must meet U.S. security standards before crossing the border.
4. More protection for patents and trademarks.
5. U.S. drug companies can sell products in Canada for 10 years before facing generic competition, two more than under NAFTA.
6. Companies can no longer use Chapter 11 to resolve disputes with governments. The only exceptions are U.S. oil companies. 

Finally, Trump has made all these changes with the goal of improving the US economy, without taking into account that, the means he has used to “get it” has been pressing and threatening his main trading allies. The tensions between the US and China are more and more evident. Nations could progressively be forced to decide to align themselves to competing power coalitions. This would increase the probability that the global trading and regulatory system fragments into competing territorial coalitions, losing the main objective of globalization, that is, cooperation between all countries.