US aluminium trade sanctions may be blessing in disguise for Jamaica if recognized, if exploited
Opportunity often comes disguised in the form of misfortune, or temporary defeat. – Napoleon Hill
Trade stats have recently become very sexy thanks in large part to President of the USA, Donald Trump’s recent trade sanctions on aluminium and steel. There is however, more to this action and the trade data than immediately meets the eye. There is opportunity – if recognized, if exploited.
What the numbers don’t say – not immediately
There is something not readily revealed by the trade flow numbers and that is the full global value chain of aluminium and steel. Going to the very base of this value chain, bauxite and iron ore the source materials of each of these goods are important sources of export earnings for several countries around the world, particularly in the developing world. Therefore, the tariffs imposed will not only have an impact on those targeted countries but all countries in the value chain.
It’s not all negative – if recognized, if exploited
US aluminium and steel sanctions are a striking example of the opportunities created by the collision between trade and investment, if countries are strategic. Click To TweetInterestingly enough the trade sanctions of USA on aluminium and steel may present some great opportunities, if recognized and if exploited correctly, by developing countries. This means being strategic. These sanctions are a striking example of the opportunities created by the collision and increasing connection between trade and investment, if countries are strategic.
Jamaica’s opportunity
Counties like Jamaica, an exporter of bauxite and alumina (a materiel resulting from the processing of bauxite and is the base raw material of aluminium) not being on the USA sanction list is a good position to upgrade itself from a raw commodity exporter to a value added exported of aluminium products. This is especially true with recently announced special economic zone investments in the aluminium value chain on the island. The resulting expansion of Jamaica’s value added aluminium exports would be minuscule, from a global or USA imports perspective, and therefore would presumably not meet the existing sanction threshold. However, the impact on the island for economic growth, job creation and development would be tremendous.
Once again thank you, Pres. Trump.
Global Trade flow of aluminium and steel
What is the flow of #steel and #aluminium around the globe?
Check out @ITC_MktAnalysis for more data.
#ITCdata pic.twitter.com/6M4aAryPyd— ITC (@ITCnews) March 2, 2018
