Summary of the
Article
With the recent murder of Jamal Khashoggi, many countries
have decided to pull out of the forum event held in Saudi Arabia. French finance
minister, Bruno Le Marie, and Dutch counterpart, Wopke Hoekstra, confirmed they
were withdrawing from the event on October 23rd. The UK trade secretary,
Liam Fox, and U.S. Treasury secretary, Steven Mnuchin, have recently pulled out
of the forum in Saudi Arabia. President Trump will have to make an important decision
to make due to a conflict with Iran. The main part of the conflict is that any
country that imports oil from Iran could be imposed with sanctions and can’t
risk counter sanctions by Saudi Arabia. Saudi Arabia is an important part for
the U.S. because this is our main supplier for oil and don’t want to ruin trade
relations.
My take on the
Article
This might hurt Saudi Arabia’s trade relations with any of
the countries they have trade with previously since they are not taking this
case more seriously. Since Saudi Arabia is most known for their oil, this might
affect their total exports to the countries they trade with. If more countries
start to pull out, the more money Saudi Arabia could lose on their exports of
oil. Also, since Saudi Arabia doesn’t seem to be taking this case very
seriously, it shows that this doesn’t affect them as much as other countries.
This is a terrible thing because any crime committed to a journalist of any
country should be taken seriously. Finally, the U.S. cannot make any bad moves with
Saudi Arabia because this is a crucial trade partner. The U.S. needs to have a meeting
with Saudi Arabia’s prime minister and try and get the investigation going
faster to figure out who did this to Jamal Khashoggi.
Source:
https://www.theguardian.com/world/2018/oct/18/liam-fox-pulls-out-of-saudi-event-over-alleged-of-jamal-khashoggi
I agree, this will hurt the Saudi international trade however they can influence the rest of the world trade because they control the supply of majority of oil throughout the world. This can hurt the world as it would increase the cost of oil products like gasoline which is a neccessity in everyones everyday life in the world. This would increase the cost of the worlds imports in general because the gas price will decrease the amount of income that people will have to spend on other goods which will drag prices of these other products down.
ReplyDeleteI agree that the international incident will harm international trade with Saudi Arabia. Due to our sanctions on Iran and the increasing tensions with the Saudi government, I believe that OPEC may experience immense shifts in production between the member nations as well as increasing condemnation and decreased trade from the international community. In recent news, the Saudi Arabian government has revealed that they will increase production in order to compensate for oil sanctions imposed on Iran, which will harm their trade levels and terms of trade. However, we can combat the overproduction and importation of Saudi oil by placing tariffs to tax the profits away from the importing pseudo-monopolist (OPEC). If we enacted tariffs on Saudi-imported oil, the United States and other collaborating nations could experience several benefits: increased tax revenue while only experiencing slightly higher consumer prices, increased domestic oil productions and the use of alternative forms of energy, and an increased potential for diplomatic relations with the Saudi Arabian government are all potential effects that could be brought forth by the profit losses to OPEC and tax gains to taxing nations. In conclusion, I believe that we should respond to the increase in Saudi Arabian oil production by increasing our tariffs in order to gain tax revenue and diplomatic leverage.
ReplyDeleteI agree with everyone in that this situation is going to hurt Saudia Arabia trade relations but like Lewis said, oil is a major trade commodity in the world so Saudia Arabia will still have strong influence in world trade. With already having implemented sanctions on oil from Iran, I feel that by adding tariffs on Saudi imported oil will cause the world price of oil to increase. The question is whether the US stands to benefit from implementing the tariff more than it will hurt them. Like Gradin said, by implementing a tariff the US stands to gain from increased tax revenue and increased domestic oil production. Overall I think tariffs should be implemented because even if the US was a at risk to lose money, Saudia Arabia should not be able to get off scott free with the situation at hand as its a serious crime against human rights.
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