President Trumps 90 day ban is trade opportunity

90 Day Ban

The 90 day ban on immigrants and visitors to the USA from mainly Muslim states by President Trump creates an opportunity to strengthen business relationships. The banned countries are Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen. Some countries are declaring already they may retaliate with counter policy. As a result trade will be impacted between the USA and these countries. The opportunities are two sided. Businesses wanting to trade with the banned countries have opportunities to improve relationships. Where the banned countries have strong marketplaces in the USA, it allows opportunities to improve US relationships.

Canada’s Gain

Countries like Australia can take advantage of this ban. While it doesn’t prevent trade, it will impede meetings and negotiations. Canada, I foresee, will be a winner out of this. Canada will become a meeting place being convenient for US company travel.

US Multinationals To Be Effected

The impact will be felt by multinational organisations working in these countries. Employees requiring day to day business visits for internal staff meetings will be effected. At this time they will not be able to enter the USA. Potentially USA employees may be banned from entry into the banned states. This creates an advantage to competitors of US multinational companies. The tension over the 90 day ban is palpable. Trade partners in countries with policies more hospitable to the banned countries may be preferred suppliers and clients.

Ban Temporary, But A Bird In The Hand

The ban is currently only 90 days and may not continue beyond the 90 day period. The temporary ban could be enough for President Trump to appease supporters of his election promises. Whether President Trump continues the ban is unknown, but this is a 90 day ‘bird in the hand’ window of opportunity for Australian businesses.