Context:
Global Trade Outlook and Statistics Report released
Global Trade Outlook and Statistics Report:
- Released by – World Trade Organisation
Key Findings:
- Report reveals preliminary signs of fragmentation in trade flows.
- For the 1st time, the publication includes a special analytical section on a recent development in international trade. The analysis looks at how the conflict in the Middle East has threatened sea shipments through the Red Sea and Suez Canal, disrupting trade links between Europe and Asia
- In 2023, intermediate goods trade was down 6% while trade in non-intermediates was flat.
- Evidence shows ‘friendshoring‘ in ICT services as US imports from Asia (mostly India) dropped to 32.6% from 45.1%, while those from North America increased.
- ‘Friendshoring’ – Trade practice where a country’s supply chain networks are focused on political and economic allies.
- India’s Status – India has become the world’s 4th largest exporter of digitally delivered services, constituting over a 1/5th of global trade in services
Initiatives to boost global supply chain and trade:
- Supply Chain Resilience initiative (SCRI) –
- Launched by – India, Japan and Australia
- Objective – To reduce dependence on China
- India-Middle East-Europe Economic Corridor – Will connect India to the Gulf and Gulf to Europe.
- Indo-Pacific Economic Framework for Prosperity (IPEF) – To strengthen economic engagement among partner countries.
Source: WTO
Previous Year Question
‘Global Financial Stability Report’ is prepared by the:
[UPSC Civil Service Exam – 2016 Prelims]
(a) European Central Bank
(b) International Monetary Fund
(c) International Bank for Reconstruction and Development
(d) Organisation for Economic Cooperation and Development
Answer: (b)
