The president made the appeal on Friday while receiving Letters of Credence from the Ambassador of Hungary, Lorand Endreffy; the High Commissioner of Rwanda, Christophe Bazivamo; and the Ambassador of Ukraine, Ivan Kholostenko, at the State House, Abuja.

President @officialABAT receives Ambassadors, mandates them to focus on new investment and trade expansion

Full statement: https://t.co/76EfPXyZeh#StateHousePressRelease

Photos: State House/Nosa Asemota pic.twitter.com/atcqPD43kg

— Presidency Nigeria (@NGRPresident) December 15, 2023

Speaking when he received the High Commissioner of Rwanda, the Nigerian leader said that the long-standing concerns over trapped funds are receiving attention and that the funds will be processed expeditiously for release.

“We are one family on the continent. We will continue to promote democracy and good governance. I will maintain an open-door policy, and the Minister of Foreign Affairs and the Chief of Staff are also available.

“For the avoidance of doubt, we are already working on the issues of double taxation, and it will be properly streamlined to favour business growth. Nigeria is home and a haven for investors,” the president affirmed.

The Rwandan High Commissioner said the government of Rwanda was prepared to enhance bilateral relations with Nigeria, with new visa policies and trade agreements.

At the ceremony, President Tinubu asked the Ambassador of Hungary to explore all opportunities for building partnerships, especially in the areas of agriculture and food security, and how to leverage the experience of the country in technology.

“Thank you so much for taking care of our students, who are in your country. We are a very big country with huge potential to sustainably spur economic growth.

We are ready to improve relations, especially in the areas of agriculture and food security,” the president said.

The Hungarian ambassador commended the president for his bold, courageous, and strategic decisions to reposition the Nigerian economy, listing some areas of collaboration to include education, agriculture, food security, security, and medical technology.

“My Prime Minister always says that our relations are based on mutual respect,” he remarked.

President Tinubu told the Ukrainian ambassador that Nigeria will always work for global peace and harmony.

“We are with you in prayers. We will continue to support good governance and democracy,” the president assured.

Eighteen months after the Trump administration signed the trade deal, the agreement has turned out to be a truce at best. The U.S. trade deficit hasn’t shrunk, most levies are still in place, and it hasn’t led to negotiations over other economic issues.

And yet, bilateral trade in goods is an area of stability in a relationship that has otherwise continued to deteriorate, with rising tension over Hong Kong, Taiwan, human rights, the origins of the Covid-19 pandemic, accusations of computer hacking and many other flashpoints.

Surging Surplus

Booming Chinese exports have overpowered imports hitting a record.

Monthly two-way trade, which tumbled to $19 billion in February of last year amid shutdowns in Chinese factories, rebounded over the past year to new records, according to official Chinese data. And that boom looks set to continue, with China purchasing millions of tons of U.S. farm goods for this year and next and stuck-at-home U.S. consumers still shopping and importing in record amounts.

While the U.S government’s numbers differ somewhat, the bustling trade has defied all expectations that the tariffs on hundreds of billions of dollars’ worth of merchandise would force a decoupling of supply chains. Instead, both sides have learned to live with the taxes, with Chinese firms buying more to fulfill the terms of the 2020 trade deal, and U.S. companies purchasing goods they can’t get elsewhere to meet elevated household demand fueled in part by trillions of dollars in government stimulus.

“We’ve seen the strong consumer demand that’s been occurring throughout the pandemic, and we’ve seen the import levels just go through the roof.

“That’s a strong sign that the economy continues to recover,” said Jonathan Gold, vice president of supply-chains and customs policy at the National Retail Federation, which represents vendors from mom-and-pop stores through the big-box chain behemoths.

Exports from South Korea and Taiwan to the U.S. have also risen over the same period, underscoring the strength of U.S. demand despite one of the worst outbreaks of Covid-19 of any nation.

U.S. Demand Soars

Chinese, Korean and Taiwanese exports to U.S. have boomed

Almost half of the $259 billion in cargo moving in and out of Los Angeles port — the U.S.’s biggest — involves China and Hong Kong. U.S. demand for goods continues unabated, with record inbound shipments to the port in May as companies start to restock ahead of the Christmas shopping season.

“All signs point to a robust second half of the year,” Los Angeles port Executive Director Gene Seroka said during a recent press briefing, noting that fall fashion, back-to-school, Halloween and holiday goods were already arriving on the docks.

With tariffs in place on more than $300 billion in imports from China, from footwear and clothing to electronics and bicycles and even pet food, many U.S. retailers are choosing to absorb the cost and squeezing their profit margins, the NRF’s Gold said. Some are passing these along to consumers.

Firms also are dealing with backlogs and bottlenecks at U.S. ports and increased shipping costs.

“Between the cost of the tariffs and the increased cost of transportation that we’re seeing, that’s having an impact on companies’ bottom line.

 “They’ve seen significant cost increases as a result of both the trade war and the transportation crisis we’re facing,” Gold said.

The U.S.-China Tariffs

Tariffs, by percentage rate, imposed by the U.S. and China on each other since March 2018

The Biden administration hasn’t said whether it plans to continue with the deal and is reviewing U.S. policy toward China, but with U.S. Trade Representative Katherine Tai calling the trade relationship “unbalanced” and Treasury Secretary Janet Yellen saying the deal didn’t address the fundamental problems with China, the outlook is unfavorable.

On top of those tensions, China’s purchasing targets expire at the end of the year, and the nation is well behind where it promised it would be now. Those targets were initially seen as unrealistically high and problems like the Covid-19 pandemic or the grounding of the Boeing 737 Max jet put them even further out of reach.

“Even if the deal is scrapped, the lesson from the past four or so years is that even if there is political will, it’s harder to stop or divert international trade than might have been thought.

“With Beijing missing its purchase targets, China refraining from aircraft purchases and companies moving automotive production out of the U.S. to avoid getting hit with tariffs from the trade war, the agreement between the world’s two biggest economies is “pretty irrelevant at this stage.”

“China buys what China needs. If it’s buying more of certain American products, it’s doing so probably out of its own interest,”  said Chad Bown, a senior fellow at the Peterson Institute for International Economics, whose latest research has focused on the pact.

Source: Bloomberg