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US Exim Bank Wants Its Charter To Last For 10 Years

On June 4, 2019, American EXIM bank supporters told Congress that the charter of the bank should be termed for at least 10 years. Supporters also appealed that the reauthorization time of the EXIM bank should be increased.

Many of the supporters are asking the government to change the rules so that it will allow EXIM banks to deal in more than $10 million. Back in 2015, Congress had reauthorized the Bank, at that time its charter had lapsed. Congress hadn’t approved the charter until last month to constitute a proper quorum. Since the bank doesn’t have a proper quorum, thus it is literally impossible for it to deal in space programs and deal in satellite launch.

Operations of EXIM Bank has been fully restored but there is a risk that the operations may cease on September 30, 2019. On that day, the charter of the Bank will expire. Back in 2015, EXIM Bank had lost the favor of conservative lawmakers. Commercial lawmakers had accused the Bank that it is causing distortion in the business dealing.

Data which is released by EXIM Bank stated that $36 billion were given by China in 2017 as export credit. The data also revealed that US only made a contribution of $200 million. In one of the exclusive interviews, Roy Kamphausen stated that at present China have several, newly made launch vehicles which are under construction.

While speaking to the press, Steve Stivers said that if US wants to hold its ground at the Trade war then it is very essential to strengthen EXIM Bank’s policies. In her exclusive interview, Linda Dempsey said that it would be very essential to focus on manufacturing units as they will provide impeccable back up for 10 years.

In one of the interviews with the press, Jim Himes stated that without proper quorum American manufacturers would lose competitive edge. During an exclusive meet with the press Bill Huizenga stated that it is nearly impossible to allow EXIM Banks such a long term reauthorization.

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Advance Tie-Up Talks Ongoing Amid Fiat Chrysler And Renault

According to reports, Fiat Chrysler Automobiles (FCA) and Renault had extensive discussions on a broad partnership that could lead to the integration of the FCA Group into the Renault-Nissan-Mitsubishi alliance.

The talks, focus on the potential cooperation between FCA and Renault and say they are in an advanced stage. However, Nissan has not yet participated in the discussions.

FCA and Renault already have a partnership for the production of commercial vehicles and have already had discussions on sharing platforms. Of course, these discussions went beyond technology sharing to become a larger joint venture.

A source stated that the talks could involve a capital transfer between FCA and Renault, saying it is not just a partnership. If both companies are interested in each other, it would be similar to the Renault-Nissan agreement that led to the establishment of the alliance between the two companies, led by Carlos Ghosn, president of the two companies.

The future of the alliance is currently being discussed between the two automakers after Ghosn’s arrest in Japan over allegations of financial fraud.

Both companies can benefit from a merger. FCA is the strongest in North America through its Jeep and Ram brands, where Renault is not present. FCA, on the other hand, has plans for the development of electric cars and can take advantage of the experience of Renault and Nissan in this area.

FCA also had discussions with the PSA group, formed by Peugeot, DS, Citroën and Vauxhall/Opel as part of a partnership. PSA chief Carlos Tavares is known for expanding his business through partnerships and acquisitions. It is closely linked to an agreement with the Jaguar Land Rover.

FCA boss Mike Manley also wants to form partnerships and mentioned at the Geneva Motor Show that he is open to collaborating with other carmakers.

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Americans Pay More For Aluminum After The Metal Tariffs

By imposing tariffs on steel and aluminum that are imported into the U.S., the president had tried to revive the declining metal market in the U.S.

To keep away competition from other countries, President Trump levied the tariffs. Tariffs which were imposed almost a year ago has been able to bring back domestic investments. Plants that were almost closed have been put to use in the metal industry.

This has also spurred employment to a certain extent. Tariffs have been imposed by the Trump administration to protect the national security of the country.

However, the prices of steel and aluminum have increased in the U.S. As the government has to undergo a complex process to procure the metals for the purpose of production, entrepreneurs are finding their cost price going up.

Stock prices of U.S. Steel and ArcelorMittal have plunged after the tariffs.

Further, job opportunities are not much. Only about 381,000 people in the U.S. have found jobs in the primary metal industry, while it was 376,000 people in the previous year.

Production of aluminum and steel has seen a rise, but a very marginal rise. However, production levels are almost 3 percent less than what is produced in China.

Tariffs were initially imposed on metals from countries like Canada, Mexico, China, Russia, Japan, and Europe. However, the tariffs were later removed from countries like Canada and Mexico, though they were subject to 10 percent on aluminum and 25 percent on steel. Tariffs continue on other countries.

After the tariffs were imposed by the U.S. on metals, aluminum prices have fallen almost 20 percent from last year. Through government-supportive smelters, China has been producing additional metal supply to meet global needs.

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Trade Issues Between US And Japan To Be Sorted Soon

President Donald Trump announced early this week that he will clear the trade issues with its long term trade partner Japan as soon as possible and would announce the details publicly by August. He made this announcement just before the impending week long state visit to Tokyo for sorting out the trade issues with Japan’s Prime Minister Shinzo Abe. Mr. Trump stated that the balance of trade between both nations will be straightened out soon. As per latest details of US Trade Representative the deficit of US with Japan with relation to goods and services was at $56.8 billion during 2018.

This visit is likely to discuss long pending threats of US to put tariffs on automobile imports from Japan and Europe. But when the subject was brought up in March, Trump postponed the auto tariff levy threat by 6 months and told Robert Lighthizer, US Trade Representative to request trade agreements from Europe and Tokyo. He also tried to exert pressure on Japan after arrival in Tokyo, saying that it has always had a substantial advantage over US for several years and asked local businessmen to invest more in United States.

Trump had stated that not much progress will be made on trade front by Japan as the ruling party of Mr. Abe is facing an election soon. During the visit he made a formal visit to Japan’s new emperor Naruhito and his wife and watched a game of Japan’s national sport sumo with Prime Minister Abe. Experts say that Trump’s visit is more symbolism than a trade discussion and both heads of state seem to be enjoying easy camaraderie. Trade officials on both sides indicate that nothing will be discussed until elections in Japan’s upper house end by July as disagreements over issues like automobiles and agriculture between both nations will take time to get resolved.

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The U.S. Eases The Trade Restrictions On Huawei, Report

A few weeks ago, the US Department of Commerce published the US entity list that consists of major industries and individual business tycoons of the countries like Russia, China, Iran, and the UK. Last Wednesday, the US Department of Commerce suggested to induct Huawei in that list meanwhile US Department of Commerce Secretary, Wilbur Ross, stated the reason behind this sudden restriction that “Huawei is engaged in activities which are contrary to US national security or foreign policy interest”. However, Huawei denies any such allegations of collaboration with the government to demolish US foreign policy.

Following these insecurities, the US government approved the suggestion and imposed the restrictions last week. From the very first day after the decision was made, Huawei faced a major downturn in their exports resulting devaluation of their presence in the global market as the US has also urged other states and countries to withdraw from any kind of trade which requires Huawei services. Furthermore, the US government is in a quest to exclude Huawei Technologies from the 5G network, operating in different countries. However, recently the US Department of Commerce eased the restrictions for 90 Days allowing all the tech companies of the US to continue engaging and working with Huawei. The U.S. Commerce Department will now allow Huawei to purchase any kind of American-made goods in order to sustain the currently working networks and provide software updates to existing Huawei handsets. Despite this 90-day grant, Huawei would remain in trouble as the restriction won’t let them access critical products of the companies like Intel and Qualcomm. More to the agony, Google is gearing up to suspend Huawei’s license for the Google products causing a serious threat to the users as well as to Huawei itself.

In order to put an end to these crises, Huawei is looking forward to launching its own app store which won’t require Google license anymore to access the Google products. Apart from the app store, its own OS is also under development to establish its products on its own OS.