Dividends and G7 countries, EU move to strip Russia of most favored trading status over conflict in Ukraine

All countries all over the world, once they have satisfied their domestic market look to export goods and services to over countries. Of of the biggest employers of the world is the movement of goods and services across borders or the import-export business. For those companies who export, they want to be treated the manner in which the home country treats them, for other countries they want the goods and services. Every once in a while the local politician will say why do not we make the item within our borders, but consumers tend to trust some countries products over others.

In an article by Adrian Morrow, the Group of Seven countries and the European Union are moving to revoke Russia’s most favored nations trading status and exclude it from the International Monetary Fund and World Bank as the West continues to impose sanctions on Russia.

The US will ban imports of Russia vodka, seafood and diamonds, while the EU will block iron and steel goods from the Russia. The US has imposed an embargo on Russian oil, gas and coal.

Most favored nation status means permanent normal relations allows a country to trade with low tariffs or low import taxes.

The EU is Russia’s largest trading partner buying nearly 38% of its exports in 2021. The US does about $35 billion in annual trade with Russia or about 1% of US imports.

Linking to dividend paying stocks, often analysis will talk about stability in the marketplace and that often comes with trade deals. The former President talked about the US – Mexico – Canada deal a great deal, although in reality he was tinkering with it rather than redoing it. Ever since two countries had a border, trade is a political issue. We want it but we want the benefits one way, unfortunately trade goes 2 way. After politicians sign trade deals, companies react to the trade deals to send goods and services and sometimes choose the least expensive place to produce the goods, and send the goods both ways. In the Ukraine Russia conflict we have seen countries willing to break long standing contracts over the war. On balance that is a good thing and hopefully we will have peace and stability which is good for business.

There are more questions than answers, till the next time – to raising questions.

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