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U.S. says new Indo-Pacific economic framework not typical trade deal

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The United States’ planned Indo-Pacific economic framework will be inclusive and flexible, and will not be structured like a typical free trade deal, its commerce secretary Gina Raimondo said on Thursday.

In a teleconference call during a visit to Malaysia, Raimondo said discussions on the framework are in preliminary stages, but could involve several key areas including the digital economy, supply chain resiliency, infrastructure, export control, and clean energy.

“We absolutely do not envision this to be a traditional trade agreement,” she said, adding that the U.S. will develop the framework with allies in the months to come.

A Commerce Department spokesperson said in an email to Reuters on Friday that no formal proposals have been put together about what the framework would include or what its precise legal structure could be.

“We do expect it would be developed in close consultation and through robust engagement with a number of stakeholders, especially Congress, as we continue to define our goals and desired outcomes for the framework,” the spokesperson said.

On Wednesday, Raimondo said an Indo-Pacific economic framework could be launched at the start of next year, and her Asia visit was to lay the groundwork for potential partnerships.

Critics of U.S. strategy for the region have pointed to its lack of an economic component after former President Donald Trump withdrew in 2017 from a U.S.-inspired trade deal, now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Earlier on Thursday, the U.S. and Malaysia said in a joint statement that both countries plan to sign an agreement by early 2022 towards improving transparency, resilience and security in the semiconductor and manufacturing sector supply chains.

The agreement comes as Malaysia seeks to tackle a shortage in semiconductor chips after supplies were disrupted due to curbs imposed to stem a surge in COVID-19 cases this year.

Malaysia’s chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages will last at least two years.

Raimondo said both governments had a broad ranging discussion with the semiconductor industry on Thursday, including to cut out redundancy in investments and to boost supplies.

 

(This story has corrected to remove quote saying agreement not envisioned to require Congress’ involvement, adds spokesperson’s comment)

 

(Reporting by Liz Lee and Rozanna Latiff; Editing by Martin Petty and John Geddie)

Economy

How will the U.S. election impact the Canadian economy? – BNN Bloomberg

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How will the U.S. election impact the Canadian economy?  BNN Bloomberg

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Trump and Musk promise economic 'hardship' — and voters are noticing – MSNBC

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Trump and Musk promise economic ‘hardship’ — and voters are noticing  MSNBC

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Economy stalled in August, Q3 growth looks to fall short of Bank of Canada estimates

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OTTAWA – The Canadian economy was flat in August as high interest rates continued to weigh on consumers and businesses, while a preliminary estimate suggests it grew at an annualized rate of one per cent in the third quarter.

Statistics Canada’s gross domestic product report Thursday says growth in services-producing industries in August were offset by declines in goods-producing industries.

The manufacturing sector was the largest drag on the economy, followed by utilities, wholesale and trade and transportation and warehousing.

The report noted shutdowns at Canada’s two largest railways contributed to a decline in transportation and warehousing.

A preliminary estimate for September suggests real gross domestic product grew by 0.3 per cent.

Statistics Canada’s estimate for the third quarter is weaker than the Bank of Canada’s projection of 1.5 per cent annualized growth.

The latest economic figures suggest ongoing weakness in the Canadian economy, giving the central bank room to continue cutting interest rates.

But the size of that cut is still uncertain, with lots more data to come on inflation and the economy before the Bank of Canada’s next rate decision on Dec. 11.

“We don’t think this will ring any alarm bells for the (Bank of Canada) but it puts more emphasis on their fears around a weakening economy,” TD economist Marc Ercolao wrote.

The central bank has acknowledged repeatedly the economy is weak and that growth needs to pick back up.

Last week, the Bank of Canada delivered a half-percentage point interest rate cut in response to inflation returning to its two per cent target.

Governor Tiff Macklem wouldn’t say whether the central bank will follow up with another jumbo cut in December and instead said the central bank will take interest rate decisions one a time based on incoming economic data.

The central bank is expecting economic growth to rebound next year as rate cuts filter through the economy.

This report by The Canadian Press was first published Oct. 31, 2024

The Canadian Press. All rights reserved.

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