Global trade is recovering in the third quarter primarily led by China and the East-Asian markets. This implies that we may start seeing a return to the new normal of international trade by the year 2022.
G20 and APEC countries were warned by the International Monetary Fund when meeting to determine ways to boost post-pandemic trade. According to platforms that offer trade data solutions, global trade will not go back to normal until the pandemic recedes.
Impact Of The Pandemic On Global Trade
Businesses of all varieties had to contend with a sharp decline in global trade and investment due to the pandemic. The losses even resulted in the closing of many factories and a disruption in supply chains.
It's true that trade is slowly beginning to recover. However, there has been a distinct change in the way most businesses conduct their foreign exchange. They no longer wish to open themselves up to heavy liabilities in case there are other pandemics.
Thus, by analysing global trade data solutions, companies have found different ways to move forward with their trade policies. These include workers rights, improved health and safety measures and environmental stewardship.
A company like Trademo can help you figure out these policies with global trade data solutions to determine what it means for your business. Here are some of the policies that countries are taking to promote trade by various countries.
What Policies Are Countries Undertaking To Help Promote Trade?
China is going down a route it has gone many times in the past with its latest five-year plan. China revealed that it wants to become more self-sufficient, especially in the green manufacturing and technology sectors. This may lead to self-sufficiency and a reduction of imports in energy and food.
2. European Union
The European Union has much to lose with the changes other countries want to make post-pandemic. That’s why they are spending a majority of their efforts into trying to maintain the world order.
The EU is working with the United States and Japan (two of the countries that benefit the most from world trade) to steer new reforms in the WTO.
Europe is also refocusing its attention toward making their trade more antitrust, tech regulated, human right centred and climate centred. The EU and North America share many of the same concerns regarding China’s unfair trade practices.
Both wish to implement a set of rules in lieu of the World Trade Organisation. London and Brussels are also trying to finalise a UK-EU trade agreement by the end of the year.
Africa is focusing on intra-African trade and has ratified the African Continental Free Trade Agreement or AfCFTA led by Nigeria. This agreement is on trade to increase trade between African countries by almost 50%. The hope is to help small and medium-sized businesses trade at the global level.
4. Latin America
Brazil is one of Latin America's biggest exporters, and the Covid 19 pandemic has hit them hard. The third most affected country by the Covid 19 pandemic is Brazil, and the economic infrastructure has almost collapsed because of it.
5. North America
President Biden has, so far, stuck with more or the less the same Trump-era trade policies. The focus is clear - the USA first. This was solidified by export bans on raw materials for covid vaccines.
How Does A Trade Data Intelligence Fit Into This?
With so many changes in international trade policy coming up, you need the assistance of a trade data solutions company like Trademo to help you with your market analysis. With their superior algorithms, they can predict the financial success of your global endeavours and help steer you on the right path.