An interesting comparison of United States working
with European Union as well as European Union working against United States reveals
how geoeconomics could play out in the global scene. Let me peruse this tangle more:
US & EU working together
Primarily this combo can derail the progress of the
BRICS as an upcoming geoeconomics giant. For example, for the year 2024 US accounts
for 26.2 % of global gdp and EU got 14.33%. BRICS scored a median figure of 28.00%.
Purely in money terms this works out as USD 29.18 Trillion for America USD 21.0
Trillion for EU while BRICS once again scoring a median figure of USD 26.7
Trillion.
Therefore US together with EU accounts for USD 50.8
Trillion and marking the global share at 40.53% of the global gdp surpassing BRICS
handsomely in terms of absolute volume as well as global share of gdp factor.
Even though US-EU trade gives surplus balance of
USD 240 Billion in latter’s favour US leverage over EU in service sector
remains unbeatable. Dependence on US service sector is indeed a heavy burden
cast upon EU but considered as necessary evil.
EU working against US
When it comes to the market outside the US & EU
combo there is an issue. Only one party can make a sweep at the expense of the
other. Either USA wins or EU does. On another
perspective, Elon Musk, a super intelligent man alive today has proposed zero
to zero tariff on industrial exports both ways between USA & the Union, whereas
agricultural trade might be allowed to suffer some form of mitigated tariff
both ways.
Christine Laggard the President of European Bank
hit the nail on the head by stating that EU must move away from financial transfer
& payment using Visa/MasterCard centred in the New York City to Brussels to
complement the SWIFT. According to her a consolidated financial techno infra-structure
must be built in Brussels incorporating payment gateway, secure financial transaction
outside the purview of US authorities and possibly outside the SWIFT system in
case US objects to the new infra-structure citing it just duplicates the SWIFT
architecture.
Moreover, EU by on its own volition could sign up
with third parties including BRICS countries as regards to tariff on trade between EU & them outside
the “rules based international order” commandeered by America.
I am leaving the readers to draw their own concussions
as regards to the geoeconomics bombshell that is on the way when EU breaks out
from the bind of USA altogether!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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