Dan Celia: Additional Trade Deals with EU, Japan Would Mean No Recession for Years
January 20, 2020
PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia says that while there are many positive aspects of the newly signed Phase 1 trade deal with China, the best trade news of the week involves the United States, the European Union and Japan.
Celia recapped details of the important deal for his millions of listeners, viewers and readers:
- China agreed to purchase an additional $200 billion in U.S. goods over the next two years as part of Phase 1 of the trade deal.
- The additional purchases will come on top of what the U.S. did in 2017.
- The deal also stipulates that Beijing will buy $77 billion in additional goods and services in 2020 and $123 billion in 2021 to meet the total $200 billion.
- China bought $186 billion of U.S. goods and services in 2017.
“Combined with the new incremental agreement, U.S. exports to China should, in theory, climb to $263 billion in 2020 and $309 billion in 2021.” Celia said. “Either amount would mark a record-breaking acceleration for U.S. exports to China. This Phase 1 trade deal is considered to be very fragile so, although markets will confidently move ahead, because of the fragility of this agreement I would suspect that markets and some businesses will remain on edge through the November elections.
“Speaking of trade, this is the best news of the week,” Celia continued. “I have been calling for it for two years—the United States, the European Union and Japan have proposed new global trade rules to curb subsidies they say are distorting the worldwide economy. This is clearly targeting China, and it will do just as I have said—cause China to be a bit more concerned about breaking any kind of trade deal with the U.S. For the past two years, I have been hoping that the Department of Commerce would begin conversations with the Eurozone and Japan and begin to make these trade deals. This is a ‘back door’ to China to keep them on their toes and open to negotiating. The Eurozone is China’s biggest economic trading partner, and Japan is its biggest competitor. However, the question still remains whether Robert Lighthizer and the rest of the Commerce Department will get on board and begin talks on trade with the EU and finish up trade talks with Japan. If this happens, we can forget about any kind of recession for at least the next two years.”
Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on more than 660 radio stations and several television networks nationwide, including FISM.TV, viewed on several post-cable television platforms and online.
Read more about Celia, FISM and “Financial Issues” or visit the FISM website, its Facebook page, on YouTube at Financial Issues with Dan Celia or on Twitter @financialissues; download the FISM app here.
To book Financial Issues Stewardship Ministries’ Dan Celia, contact Media@HamiltonStrategies.com or Patrick Benner, 610.584.1096, ext. 104, or Deborah Hamilton, ext. 102.