United States Current Affairs - 2020

Intel Capital Invests Rs 1894.50 crore in Jio Platforms

United States-based Intel Corporation’s investment arm Intel Capital will invest Rs 1,894.50 crores in Reliance Industries Limited’s (RIL’s) subsidiary company Jio Platform. The announcement was made by Reliance Industries Limited on 3rd July 2020. With this investment, equity value in Jio Platforms rose to Rs 4.91 lakh crore, while Rs 5.16 lakh crore its enterprise value.

Rs 1894.50 of investment will translate to 0.39 percent of an equity stake for Intel Capital in Jio Platforms. In a matter of 11 weeks since 22nd April 2020, this was the 12th foreign investment in Jio Platforms. The 12 investments make a total of Rs 1,17,588.45 crores that have been raised in Jio Platforms. This investment also takes the total stake in Jio Platforms of foreign investors to 25.09 percent.

Investments in Jio Platform (from 22nd April 2020 to 2nd July 2020)

  • 22nd April: Facebook 9.99 percent stake at Rs 43,573.62 crore
  • 4th May: Silver Lake 1.15 percent stake at Rs 5,655.75 crore
  • 8th May: Vista 2.32 percent stake at Rs 11,367 crore
  • 17th May: General Atlantic 1.34 percent stake at Rs 6,598.38 crore
  • 22nd May: KKR 2.32 percent stake at Rs 11,367 crore
  • 5th June: Mubadala 1.85 percent stake at Rs 9,093.60 crore
  • 5th June: Silver Lake: 0.93 percent stake at Rs 4,546.80 crore
  • 7th June: ADIA 1.16 percent stake at Rs 5,683.50 crore
  • 13th June: TPG 0.93 percent stake at Rs 4,546.80 crore
  • 13th June: L Catterton 0.39 percent stake at Rs 1,894.50 crore
  • 18th June: PIF 2.32 percent stake at Rs 11,367 crore
  • 2nd July: Intel Capital 0.39 percent stake at Rs 1,894.50 crore

NAFTA 2.0 comes into effect from 1st July 2020

A new free trade agreement between the United States, Mexico, and Canada comes into effect from 1st July 2020 onwards. It replaced the earlier 26 years old free trade agreement between the three countries- North America Free Trade Agreement (NAFTA). The new free trade agreement has been ratified by all three countries.

All three signatories of the new trade agreement have referred it by different names, United States called it USMCA- the United States Mexico Canada Agreement, while the Canadian Government has referred to as CUSMA, in Mexico by T-MEC.

NAFTA 2.0 is not a wholly new agreement, it is a renegotiated version of the earlier NAFTA agreement with certain changes, hence it has been referred to as NAFTA 2.0.

Background

During the 2016 Presidential Election Campaign, United States President Donald Trump has announced and promised he would renegotiate the NAFTA free trade agreement with Mexico and Canada, and if the renegotiations fail, we would pull out of the NAFTA agreement.

The renegotiations with largely focusing on ‘Steel and Aluminum Tariffs’ between the United States and Canada begin in August 2017. NAFTA 2.0 was signed by the Head of the States of the three countries on the sideline of the 2018 G20 Summit in Argentina. A year later a revised version of the deal was signed on 10th December 2019 before being ratified by the three countries.