Economy

The European Union has decided to cancel €121 million in funds intended to support Georgia's economic development and its aspirations for EU membership. The decision was confirmed by the EU delegation in Georgia, which said that the growing repression of dissent was the reason for the withdrawal of financial assistance.

In September, it was announced that China has joined Kazakhstan, Azerbaijan, and Georgia as a partner in the Middle Corridor Initiative, with the China Railway Container Transport Corporation (CRTC) participating in the project. The decision followed extended talks over several months and was confirmed during the 8th International Silk Road Expo, held in Xi’an from September 19-20, 2024. This announcement comes amid the growing significance of the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), as a crucial trade link between China and Europe, passing through several Central Asian and South Caucasian countries. The Middle Corridor Multimodal joint venture, established in 2023, offers a “one-stop-shop” service for cargo delivery along this route, aiming to enhance transport coordination, provide transparent tariffs, and ensure consistent delivery times.

The United States has announced a $20 million aid package to strengthen Armenia's cyber, border and energy security, USAID Administrator Samantha Power announced at a Democracy Delivers Initiative event in New York. The event, co-hosted by US Secretary of State Antony Blinken, was attended by Armenian Prime Minister Nikol Pashinyan.

China's Commerce Minister Wang Wentao has expressed concern that the European Union's decision to impose tariffs on electric vehicles (EVs) will "seriously hamper" trade and investment cooperation and negatively affect both China and Germany. During talks with German Vice-Chancellor and Economics Minister Robert Habeck on Tuesday (17 September), Wang stressed the importance of finding a solution in line with World Trade Organization rules to avoid escalating trade tensions between China and the EU. The European Commission is considering final tariffs of up to 35.3% on Chinese-made electric vehicles, on top of the standard 10% import duty on cars.

Morocco is pushing ahead with the development of high-speed rail. Morocco plans to launch a tender to study the project of a high-speed rail link between Fez and Rabat, with a stop in Meknes. Meknes is one of the cities that will be used for team training and accommodation during the 2030 FIFA World Cup.

Chinese electric car manufacturer BYD, which stands for 'Build Your Dreams', signed a deal with Türkiye on Monday (8 July) to open a major factory in the country. The move will allow the Chinese to avoid new import tariffs from Brussels.

Political uncertainty in France and an EU trade dispute with China are casting a shadow over European corporate earnings, investors say, despite forecasts pointing to better corporate results. According to LSEG I/B/E/S equity research, second-quarter earnings for companies in the pan-European STOXX 600 index are expected to rise by 2%, with revenues up 1.7%. This would be the first quarter of growth since early 2023. Investors had been optimistic about Europe's stock markets as the European Central Bank adopted a looser policy and the economic outlook improved. However, French President Emmanuel Macron's unexpected decision to call a general election has raised doubts.

Commerce and trade ministers from the United States, Japan and South Korea pledged on Wednesday (27 June) to work together on strategic issues such as artificial intelligence (AI) security, export controls, clean energy and semiconductor supply chains. "We are redoubling our efforts to work together," said US Commerce Secretary Gina Raimondo at the start of the meeting in Washington. "As leaders in manufacturing, services, technology and innovation, we must work together not only for the benefit of our countries, but for the security of the world," she added. Raimondo was joined by Japan's Minister of Economy, Trade and Industry, Ken Saito, and South Korea's Minister of Trade, Industry and Energy, Ahn Duk-geun, for this inaugural trilateral meeting, which was agreed by their leaders at a summit in Camp David in August.