As the trade spat between China and the US continues, it is likely to spill over to other countries. For Australia and New Zealand, this could bring both risks and opportunities.
Trade wars are generally bad. But far worse for Australia is that the US and China make peace through a deal to establish a bilateral world order.
Indonesia is more important to Australia than many Australians realise.
The death of the rules-based world order that supports the global economy and free trade has been greatly exaggerated.
International trade policy requires three traits to be successful and lead to mutual prosperity. Trump's is missing all three, as he showed at the G-7 summit.
The Trump administration's new deal with China, which won't benefit many workers, shows the pitfalls of pursuing bilateral agreements at the expense of multilateral ones like NAFTA.
Trade under Trump will mean more bilateral agreements, hard bargaining and ultimatums, a sharp departure from Obama's multilateral, win-win approach.
The agreement could be as good as dead, if, instead of pushing ahead without the US, its members decide to explore bilateral trade agreements with the country.
It seems in the current global turbulence multilateral trade deals are dead, long live bilateral agreements.