Import and export activity is an essential aspect of optimizing economic performance. By allowing each nation to focus resources on those goods and services where it has a competitive advantage and import other products, foreign trade helps improve business conditions and quality of life around the globe.
President Trump's recent announcement that the United States and the European Union (EU) would begin trade negotiations and work toward reducing constraints that could yield short-term success and help set the stage for other progress in the near future. EU members are major US trading partners, and, not only would a strong trade deal with zero tariffs have the potential to further enhance economies on both sides of the Atlantic, but also provide substantial benefits for the state of Texas.
Japan and the EU announced a trade deal that Dr. Perryman says will put the US at a significant competitive disadvantage.
Europe remains in flux; the fate of Brexit, kicked to parliament, and a new US president who appears to have little use for the current European order.
The Euro is beginning to show signs of improvement, but it's coming back from a 12-year low and Europe continues to have structural issues.
On June 23, the people of the United Kingdom voted to leave the European Union (EU). It was the largest voter turnout since 1992, with more than 30 million people (nearly 72%) participating. The margin was very close (about 52% to 48%), and it was unclear which side would win up to the last minute. The economic fallout of the decision will likely be decidedly negative for the UK, but also for the United States and Texas. It is much too early to know how things will unwind, the pace of the split, or what it will look like on the other side. This lack of clarity is in and of itself a problem for global markets, but an initial perspective is useful.