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    Table of Content

    Global Trade Outlook and Statistics Report Released by World Trade Organisation

    Posted 11 Apr 2024

    2 min read

    • Report reveals preliminary signs of fragmentation in trade flows. 

     

    • Key findings 
      • Fragmentation in goods 
        • In 2023, intermediate goods trade was down 6% while trade in non-intermediates was flat.
      • Share of Asian trading partners in China ’s total parts and accessories declined slightly from (62.8% in 2019 to 60.2% ). 
      • Resilience of global trade is being tested by disruptions on two of the world’s main shipping routes:
        • Panama Canal: Handles 6% of global trade. It is currently operating at partial capacity due to freshwater shortages
        • Suez Canal:  Handles about 12% of global trade. It is the shortest maritime route between Asia and Europe. Trade is hampered due to attacks on vessels. 
        • Diversion of traffic around the Cape of Good Hope has added around 10 days to Asia-Europe journeys. 
      • Fragmentation in Services 
        • It is the possible impact of data flow disruptions. 
        • Evidence shows "friendshoring" in ICT services. US imports from Asia (mostly India) dropped to 32.6% from 45.1% , while those from North America increased.
        • ‘Friendshoring’ is a trade practice where a country’s supply chain networks are focused on political and economic allies.

     

    Initiatives Taken to boost global supply chain and trade 

    • Supply Chain Resilience initiative (SCRI) launched by India, Japan and Australia
    • India-Middle East-Europe Economic Corridor for connecting India to the Gulf and Gulf to Europe.
    • Indo-Pacific Economic Framework for Prosperity (IPEF) to strengthen economic engagement among partner countries 
    • Tags :
    • Global Trade
    • friendshoring
    • WTO REPORT

    Articles Sources

    https://www.wto.org/english/res_e/booksp_e/trade_outlook24_e.pdf https://www.weforum.org/agenda/2023/02/friendshoring-global-trade-buzzwords/
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