The World Seems To Feel Safer After Trump-Kim Summit
(Kitco News) - Financial markets breathed a sigh of relief following Donald Trump’s historic summit in Singapore with North Korean leader Kim Jong-un.
Tuesday marked the first time a sitting U.S. President and a member of the Kim dynasty met face to face.
According to a joint statement signed at the end of the summit, both parties agreed on the complete denuclearization of the Korean peninsula, although few specific plans have been laid out on the removing North Korea’s nuclear arsenal.
“President Trump committed to provide security guarantees to the DPRK [Democratic People’s Republic of Korea] and Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula,” the statement said.
Trump added at a press conference that denuclearization would start “very, very quickly.”
Tensions between the two nations have been the epicenter of heightening geopolitical tensions last year, with North Korea taking center stage in Trump administration’s foreign policy agenda.
While Tuesday’s summit saw markets react relatively calmly, doubts over whether or not the summit would actually take place in the past have caused markets to tumble.
On May 24th, Trump cancelled his planned summit with Kim on June 12th, sending the S&P 500 down 2% over the following days.
One of the most surprising parts of the negotiations in Singapore is Trump’s willingness to halt joint military exercise with South Korea, which is a U.S. ally. The U.S. has previously ruled out a halt in military exercises on the Korean peninsula as part of its military alliance with Seoul.
Other agreements that have been signed include the recovering of POW/MIA remains and their immediate repatriation, as well as a willingness to “build a lasting and stable peace regime on the Korean Peninsula.”