The Day at a Glance | May 27 2021

The Top

*Chinese and US trade representatives held a phone call; China called for the withdrawal of tariffs imposed during the previous administration.

*US GDP for the 1Q21 was revised upwards slightly (4.3% vs 4.1% prev.).

*Unemployment in Mexico increased to 4.7% in April; withdrawal of afores due to unemployment increased 37.3%.

*Biden will present his first fiscal year budget, which will start October 1st; Republicans plan to present a 1 trillion dollar infrastructure counterproposal.

*US Vice-President Kamala Harris will meet up with businesses in order to promote an economic growth program in Central America.

Economic environment

Chinese and US trade representatives held their first phone call under Biden. United States Trade Representative Katherine Tai and Vice Premier of the People`s Republic of China Liu He held their first phone call to go over the trade relationship between both countries. China`s Ministry of Trade assured that the conversations were intense, pragmatic and constructive – all in a context of mutual respect. The US Trade Representative`s Office disclosed that the Biden-Harris administration`s guidelines were presented, which will put American workers at the center of their trade policy. Additionally, the trade relationship between both was assessed and concerns were brought up. Media in China assures that there are still important differences between both countries and that a deeper form of communication is needed for them to be resolved. Some reports affirm that China has reiterated that the withdrawal of tariffs imposed during the Trump administration is a necessary condition for bilateral relations to improve. At the moment, Katherine Tai has continued with the previous administration`s trade policy and China is expected to meet its commitments. China and the US are still carrying out tariffs worth billions of dollars; while China still doesn’t meet the purchase of goods stipulated in the trade agreement.