Effects of US-China trade disputes on global trade relations Case study: Latin America

Abstract

This article is organised to summarise what has been happening in trade relations between US and China and to express how this so-called trade war affects trade relations of Latin America as a region where both actors of the dispute have been carrying a lot of trade relations in. Whether Latin America would be in advantaged position or not, as long as this trade dispute goes on between two giant economies of the world, there will be some consequences, risks and also opportunities for the region in terms of its trade relations with the parties. Therefore, it is very much fair to be interested in the region's upcoming moves and one will be able to find necessary data and information besides concluding remarks while reading this work.

Keywords:

• Trade dispute
• Latin American trade relations
• China
• US
• import and export
• trade deficit

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Notes

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 Artificially overvalued dollar created through printing more and more Money without any gold reserves to balance the curreny caused the US to have negatively affected balance of payments and this led dollar to be devaluated by the President of the time Niixon.

2 Purpose of social research is a broad chapter that should be read for those interested in the area; suggested book by Neumann (2014, pp. 91–121).

3 “Tesla plunged as much as 6.3%–$224.50, the lowest intraday since January 2017, after China defied U.S. President Donald Trump by announcing plans to raise duties on $60 billion worth of American imports starting June 1” (Dey, 2019).

4 The US-Mexico-Canada tripartite agreement was completed and positive commercial moves were made for the US trade. Mexico is the second largest export market in America's soybean and meal sector. For the US, which has a large production capacity for soybean, tense relations with China have necessitated the revision of the NAFTA agreement.

5 The USA-Mexico-Canada tripartite agreement was completed and positive commercial moves were made for the soybean trade. Mexico is the second largest export market in America's soybean and meal sector. The tension in relations with China for the US, which has a large production in the soybean, has necessitated the revision of the NAFTA agreement, and it was aimed to find a solution for the market for the soybean (ASA, 2018).

6 Even after Bretton Woods system collapsed, despite all new mechanisms to coordinate economy there were incredibly massive crisis during 1990s such as European currency crisis of 1992–1993, Mexican Peso crisis of 1994–1995, Asian financial crisis in 1997–1998, Argentine crisis of 1999–2002…

7 The USA-Mexico-Canada tripartite agreement was completed and positive commercial moves were made for the soybean trade. Mexico is the second largest export market in America's soybean and meal sector. The tension in relations with China for the US, which has a large production in the soybean, has necessitated the revision of the NAFTA agreement, and it was aimed to find a solution for the market for the soybean (ASA, 2018).

Additional information

Notes on contributors

Nilay Yildiz

Nilay Yildiz is an Academic working as a Research Assistant at Marmara University in Istanbul, who conducts studies on political economy, Latin America, Mexican history, Marxist theory, dependency, and world-systems theory. Academic studies and activities of the author in the field can be followed at the following addresses: https://www.researchgate.net/profile/Nilay_Yildizhttps://dergipark.org.tr/en/pub/@nilayyildizhttps://marmaraedu.academia.edu/Nilay%C3%96ktenhttps://avesis.marmara.edu.tr/nilay.okten/dokumanlar