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Global Trade Outlook and Statistics Report


Why is it in the news?

  • Global Trade Outlook and Statistics Report was released by World Trade Organisation.

More about the news

  • Preliminary signs of fragmentation in trade flows identified in the Global Trade Outlook and Statistics Report by the World Trade Organisation.

Fragmentation in goods trade:

  • In 2023, intermediate goods trade decreased by 6%, while trade in non-intermediates remained flat.
  • The share of Asian trading partners in China’s total parts and accessories declined slightly from 62.8% in 2019 to 60.2%.
  • Disruptions on major shipping routes, including the Panama Canal and Suez Canal, are testing the resilience of global trade.
  • Panama Canal, handling 6% of global trade, is operating at partial capacity due to freshwater shortages.
  • Suez Canal, responsible for about 12% of global trade, faces trade hindrances due to vessel attacks, leading to diversions of traffic and longer Asia-Europe journeys.

Fragmentation in services trade:

  • Potential impact of data flow disruptions noted.
  • Evidence of “friendshoring” observed in ICT services, with US imports from Asia (mainly India) dropping to 32.6% from 45.1%, while imports from North America increased.
路聽聽聽聽聽聽 “Friendshoring” refers to a trade practice where a country’s supply chain networks are focused on political and economic allies.

 

 

Initiatives to boost global supply chain and trade

路聽聽聽聽聽聽 Supply Chain Resilience Initiative (SCRI) launched by India, Japan, and Australia.

路聽聽聽聽聽聽 India-Middle East-Europe Economic Corridor aimed at connecting India to the Gulf and Gulf to Europe.

路聽聽聽聽聽聽 Indo-Pacific Economic Framework for Prosperity (IPEF) established to enhance economic engagement among partner countries.

 

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