The United States and Pakistan have reached a trade deal that aims to reduce tariffs and increase investment, particularly in energy, mining, IT, cryptocurrency, and other sectors. The agreement was finalized after talks in Washington, with the Pakistani finance ministry hailing it as a new era of economic collaboration. Pakistan had initially faced a potential tariff of 29%, but this was later suspended, allowing for trade talks to reach an August 1 deadline. The deal is seen as a significant improvement over regional rivals Vietnam and India, which imposed tariffs of 20% and 25% respectively under previous agreements.
The United States and China clashed at a UN Security Council meeting over the Panama Canal, with the US warning that China's influence could threaten global trade and security. Panama's President José Raúl Mulino stressed the canal's neutrality, while China's Ambassador Fu Cong emphasized respect for Panama's sovereignty and management of the waterway. The US has pressured China to sell its interests in ports at either end of the canal to a US consortium, but Panama has rejected this proposal. China accused the US of fabricating lies and seeking control of the canal as a pretext, while the US claimed China's influence posed a threat to global maritime security.
Australian Foreign Minister Penny Wong expressed hope for the Palestinian people if they achieve statehood, amid severe food insecurity affecting over two million Palestinians. A protest in Sydney saw at least 90,000 marchers call for sanctions against Israel. The Gaza crisis began after Hamas attacked Israel on October 7, resulting in 1,200 deaths and 250 hostages. Israel's response has led to over 61,000 fatalities, according to Gaza's health authorities, with the UN warning of acute food insecurity affecting more than two million people.
The US is concerned about China's growing influence in South America due to its expansive and unlawful maritime claims, which threaten maritime security and commerce. US Secretary of State Antony Blinken's comments echoed this sentiment, while Chinese Foreign Minister Wang Yi condemned "unwarranted accusations" against China, claiming they were a pretext for the US to gain control of the Panama Canal. US President Donald Trump has made unsubstantiated claims that China secretly controls the canal and threatened to "take back" it, despite its history being built by the US in the 1900s and returned to Panama in 1999.
The agreements reached by Japan, South Korea, and the European Union with the US before Donald Trump's deadline were seen as capitulation, but they may now be viewed as a strategic move to counter his actions. The recent imposition of higher tariffs on Canada, Brazil, and India suggests that these countries may consider collaboration within the Brics grouping to counter US influence.
EU leaders have declared that international borders should not be changed by force, emphasizing the importance of respecting international law, including principles of independence, sovereignty, and territorial integrity. However, Hungarian Prime Minister Viktor Orban has opposed EU military aid to Ukraine, criticizing sanctions against Russia as ineffective and damaging to the European economy. Orban's close alliance with former US President Donald Trump is also a concern, as they plan to host Russian President Vladimir Putin in Alaska for peace talks, potentially leading to agreements unfavorable to Ukraine. The EU reaffirmed its support for Ukraine's right to decide its own future, stating that meaningful negotiations can only occur within the framework of a ceasefire or reduced hostilities.
EU Supports Ukraine's Right to Self-Determination European Union leaders have welcomed US President Trump's efforts to end Russia's war in Ukraine, emphasizing that Ukraine must decide its own path to peace while respecting international law and principles of independence, sovereignty, territorial integrity, and non-forceful changes to borders. The EU has expressed support for Ukraine's right to self-determination, with European Union Minister Oana Țoiu stating that the bloc wants Ukraine to participate in peace negotiations alongside Russia. Talks between US President Donald Trump and Russian President Vladimir Putin are set to take place on August 15, with a virtual summit also planned. EU leaders have emphasized the need for security guarantees while supporting Ukraine's right to self-determination, with High Representative Kaja Kallas stressing that no concessions should be made to Russia until a ceasefire is reached.
India has announced a 50-country export plan worth $50 billion to offset the impact of US tariffs on its economy. The plan focuses on exporting textiles, pharmaceuticals, and IT services, aiming to diversify markets and reduce dependence on key countries. Indian Prime Minister Narendra Modi has opposed US tariffs, with experts predicting improved relations once the current episode passes.
Indonesian Agriculture Minister Andi Amran Sulaiman emphasized cooperation with Peru in smart agriculture, human resource development, and market access to boost exports of high-value products. The two nations are deepening their partnership as they commemorate the 50th anniversary of diplomatic relations established on August 12, 1975. President Prabowo Subianto and Peruvian President Dina Ercilia Boluarte Zegarra discussed strengthening cooperation in food security, including joint development of smart agriculture and capacity building in the agricultural sector. The Indonesia-Peru Comprehensive Economic Partnership Agreement (CEPA) aims to expand market access and boost trade, particularly in agriculture and food, with Peru being a top exporter of fresh fruit and superfoods such as quinoa, chia, and blueberries.