Mark Mobius suggested that the United States under the presidency of Donald trump may conclude with Russia a new trade agreement. This investor wrote in his blog on the website of Franklin Templeton Investments.
“As a businessman, trump is likely to feel at home during negotiations with other countries, and I think he will be able to reach trade and investment agreements that would satisfy both sides. For example, it may be a new relationship and a trade agreement with Russia, given that trump has focused on Russia during his election campaign,” wrote Mobius.
Such agreements can be concluded with other developing countries, which have not been satisfied stringent conditions of multilateral agreements such as the North American free trade agreement (NAFTA), said the investor.
In his opinion, the potential for a reduction in taxes and favorable business environment in the U.S. may lead to more active attempts of American companies to grow, not only domestically, but also to go international, especially, emerging markets.
“If I had to make a presentation to the new President, I would have asked him to accelerate the adoption of free trade agreements and the free investments from countries around the world,” said Mobius.
Now the U.S. and Russia, the agreement on trade relations dated 1992, signed with the USSR on 1 June 1990. The agreement on mutual protection of investments was signed, but not ratified. Negotiations broke down in 2014 after the events in the Crimea.