{"id":55331,"date":"2020-04-24T11:22:43","date_gmt":"2020-04-24T01:22:43","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=55331"},"modified":"2020-04-24T11:22:43","modified_gmt":"2020-04-24T01:22:43","slug":"the-trade-cure-for-the-global-economy","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/","title":{"rendered":"The trade cure for the global economy"},"content":{"rendered":"
<\/figure>\n

The Covid-19 pandemic has sent the world into perilous, uncharted territory from which no country will emerge unscathed. More than half of the global population is under some form of lockdown. All economies, rich and poor, are falling into recession and can limit the fallout only by working together.<\/p>\n

China\u2014the pandemic\u2019s first epicentre\u2014offers insight into the need to work together. The months-long lockdown of Hubei province, together with strict movement restrictions across the country, caused a nearly 40% drop in year-on-year industrial profits in January and February. Factories began to reopen in March, but have faced order cancellations, postponements and payment delays as overseas buyers struggle to cope with the pandemic\u2019s effects.<\/p>\n

So, even as public health is recovering, the speed of China\u2019s economic recovery will depend at least partly on the rest of the world. Given how deeply interconnected the global economy is, this will be true for every country: even as the pandemic is controlled at home, disruptions elsewhere in the world\u2014and, potentially, additional waves of outbreaks\u2014will impede recovery.<\/p>\n

Global supply chains tell a similar story. Even before the pandemic, supply chains were absorbing the impact of two years of trade disputes between China and the United States. Now, they\u2019re dealing with a combination of production stoppages, transportation disruptions and plummeting global demand. The World Trade Organization estimates that global trade may fall by as much as 32% this year<\/a>. Meanwhile, unemployment is skyrocketing in many economies: in the past five weeks, a record 26.4 million unemployment claims have been filed<\/a> in the US alone.<\/p>\n

It is high time we recognised how irrevocably connected and interdependent the world has become. No country can win on its own, despite what some may think. As the world confronts a severe recession and humanitarian catastrophe, nationalist political posturing is the last thing anyone needs.<\/p>\n

The only way to minimise the pandemic\u2019s fallout is with solidarity: to protect their own people, national governments must collaborate to develop solutions that benefit all<\/em> people. The first step is to remove protectionist tariffs and other trade barriers, thereby ensuring that critical goods\u2014especially medical supplies and equipment, and food and other essentials\u2014are delivered wherever they are needed. Nobody is safe until everybody is safe.<\/p>\n

Solidarity also means protecting jobs, incomes and livelihoods everywhere. Among other things, this demands practical measures to keep small and medium-sized enterprises afloat\u2014a point that the International Chamber of Commerce recently underscored<\/a>. SMEs account for a significant share of jobs in most major economies and provide many of the goods and services we use daily. To ensure that a general slowdown doesn\u2019t cause lasting structural damage, these firms must be protected.<\/p>\n

But the imperative extends beyond propping up existing firms long enough to return to business as usual. As we chart a pathway out of the Covid-19 crisis, we should aim to create a better future, shaped not by competition, with countries weaponising the trade and other ties that underpin shared prosperity, but by mutually beneficial cooperation.<\/p>\n

As we work to revitalise multilateralism, we must also reshape it in a way that recognises and reflects the many dimensions of global interdependency. This means, first and foremost, ensuring open and sustainable global trade, which is a proven means of enabling all countries\u2014large and small, rich and poor\u2014to achieve economic growth and alleviate poverty. Trade also underpins global peace and stability, by giving everyone a stake in the same world system.<\/p>\n

Establishing such a system requires more than removing the tariffs, administrative impediments and \u2018behind the border\u2019 measures that encumber the movement of basic consumer products, industrial goods, and especially technology. Countries must recognise that either we all win\u2014with people everywhere gaining access to the tools they need to improve their quality of life, develop industries and innovate\u2014or we are all worse off.<\/p>\n

That means drastically improving access to trade finance, especially in the emerging economies, where there\u2019s a funding gap of over US$1 trillion<\/a>. Insufficient trade and investment finance hits SMEs especially hard, hampering their ability to expand or innovate in good times and to survive in bad times. That\u2019s why the International Chamber of Commerce has called on banks to boost bridge funding to companies to mitigate the worst effects of the Covid-19 crisis, and allow companies to continue to trade through a financial shortfall.<\/p>\n

But much more needs to be done. While boosting trade finance during the 2008 global financial crisis helped to catalyse the global recovery, progress has since stalled. To ensure a sustained recovery from this crisis, and the development of a more resilient and inclusive global economy in the longer term, trade finance must occupy a permanent place on the global agenda.<\/p>\n

Reviving multilateralism and ensuring open trade are entirely achievable objectives. They require no new laws or additional resources, only commitment and solidarity. The payoff\u2014equitable and sustainable development\u2014would be massive.<\/p>\n

Humanitarian aid has long proved critical in times of crisis. Now, in the midst of a crisis gripping the entire world, all of us must recognise the importance of humanitarian trade.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Covid-19 pandemic has sent the world into perilous, uncharted territory from which no country will emerge unscathed. More than half of the global population is under some form of lockdown. All economies, rich and …<\/p>\n","protected":false},"author":1123,"featured_media":55334,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[2658,1193,983,365],"class_list":["post-55331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-coronavirus","tag-economy","tag-pandemic","tag-trade","dinkus-coronavirus"],"acf":[],"yoast_head":"\nThe trade cure for the global economy | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The trade cure for the global economy | The Strategist\" \/>\n<meta property=\"og:description\" content=\"The Covid-19 pandemic has sent the world into perilous, uncharted territory from which no country will emerge unscathed. More than half of the global population is under some form of lockdown. All economies, rich and ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/\" \/>\n<meta property=\"og:site_name\" content=\"The Strategist\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ASPI.org\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-24T01:22:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2020\/04\/coronaclosed2404.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1349\" \/>\n\t<meta property=\"og:image:height\" content=\"901\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Victor K. Fung\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:site\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Victor K. Fung\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#website\",\"url\":\"https:\/\/www.aspistrategist.ru\/\",\"name\":\"The Strategist\",\"description\":\"ASPI's analysis and commentary site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.aspistrategist.ru\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-AU\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#primaryimage\",\"url\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2020\/04\/coronaclosed2404.jpg\",\"contentUrl\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2020\/04\/coronaclosed2404.jpg\",\"width\":1349,\"height\":901},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/\",\"url\":\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/\",\"name\":\"The trade cure for the global economy | The Strategist\",\"isPartOf\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#primaryimage\"},\"datePublished\":\"2020-04-24T01:22:43+00:00\",\"dateModified\":\"2020-04-24T01:22:43+00:00\",\"author\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/cacf6c1c806bb4e8af45117893235fb8\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.aspistrategist.ru\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The trade cure for the global economy\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/cacf6c1c806bb4e8af45117893235fb8\",\"name\":\"Victor K. Fung\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/cfbcc64dc7add14c7f72192ed89299aa?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/cfbcc64dc7add14c7f72192ed89299aa?s=96&d=mm&r=g\",\"caption\":\"Victor K. Fung\"},\"url\":\"https:\/\/www.aspistrategist.ru\/author\/victor-k-fung\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The trade cure for the global economy | The Strategist","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/","og_locale":"en_US","og_type":"article","og_title":"The trade cure for the global economy | The Strategist","og_description":"The Covid-19 pandemic has sent the world into perilous, uncharted territory from which no country will emerge unscathed. More than half of the global population is under some form of lockdown. All economies, rich and ...","og_url":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/","og_site_name":"The Strategist","article_publisher":"https:\/\/www.facebook.com\/ASPI.org","article_published_time":"2020-04-24T01:22:43+00:00","og_image":[{"width":1349,"height":901,"url":"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2020\/04\/coronaclosed2404.jpg","type":"image\/jpeg"}],"author":"Victor K. Fung","twitter_card":"summary_large_image","twitter_creator":"@ASPI_org","twitter_site":"@ASPI_org","twitter_misc":{"Written by":"Victor K. Fung","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/www.aspistrategist.ru\/#website","url":"https:\/\/www.aspistrategist.ru\/","name":"The Strategist","description":"ASPI's analysis and commentary site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.aspistrategist.ru\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-AU"},{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#primaryimage","url":"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2020\/04\/coronaclosed2404.jpg","contentUrl":"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2020\/04\/coronaclosed2404.jpg","width":1349,"height":901},{"@type":"WebPage","@id":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/","url":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/","name":"The trade cure for the global economy | The Strategist","isPartOf":{"@id":"https:\/\/www.aspistrategist.ru\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#primaryimage"},"datePublished":"2020-04-24T01:22:43+00:00","dateModified":"2020-04-24T01:22:43+00:00","author":{"@id":"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/cacf6c1c806bb4e8af45117893235fb8"},"breadcrumb":{"@id":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#breadcrumb"},"inLanguage":"en-AU","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.aspistrategist.ru\/the-trade-cure-for-the-global-economy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.aspistrategist.ru\/"},{"@type":"ListItem","position":2,"name":"The trade cure for the global economy"}]},{"@type":"Person","@id":"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/cacf6c1c806bb4e8af45117893235fb8","name":"Victor K. Fung","image":{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/www.aspistrategist.ru\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/cfbcc64dc7add14c7f72192ed89299aa?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cfbcc64dc7add14c7f72192ed89299aa?s=96&d=mm&r=g","caption":"Victor K. Fung"},"url":"https:\/\/www.aspistrategist.ru\/author\/victor-k-fung\/"}]}},"_links":{"self":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts\/55331"}],"collection":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/users\/1123"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/comments?post=55331"}],"version-history":[{"count":4,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts\/55331\/revisions"}],"predecessor-version":[{"id":55336,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/posts\/55331\/revisions\/55336"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/media\/55334"}],"wp:attachment":[{"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/media?parent=55331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/categories?post=55331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aspistrategist.ru\/wp-json\/wp\/v2\/tags?post=55331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}