Is Free Trade Under Attack?

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One of the defining transformations of the 20th century was globalization. Since the end of World War II, countries and cultures have become more interconnected than ever before, through free trade agreements, technology, multi-national corporations, and the creation of structures such as the IMF and the World Trade Organization.

Trade economists liked to think that the benefits of globalization—economic growth, more consumer choice, lower prices—had made it unassailable. But cracks in the international order have started to appear. 

Today in Global Small Business: Imitation Isn't Enough With AI

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What's affecting me, my clients, my colleagues and other global small business owners:

• The ethical issues of AI; imitation isn't enough.
• Fears of trade protectionism are overdone.
• The fallout of Red Sea disruptions for global trade and inflation.
• Quote of the week:  "The freer the flow of world trade, the stronger the tides for economic progress and peace among nations. I've seen in my lifetime what happens when leaders forget these timeless principles. They seek to protect industries and jobs, but they end up doing the opposite." – President Ronald Reagan 
• World economic outlook April, 2024 from IMF.
• The World Trade Organization (WTO) at 30.

Let's Push for Better Opportunities for Women in Trade

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According to three international trade bodies, for a more inclusive approach to rebuilding the post-pandemic economy, women need to participate more in the most profitable exporting sectors.

At the World Trade Organization (WTO) Public Forum in Geneva last week, WTO director general Ngozi Okonjo-Iweala, International Trade Centre (ITC) executive director Pamela Coke-Hamilton and Institute of Export and International Trade (IoE&IT) director general Marco Forgione highlighted the importance of an inclusive economic recovery, with a particular view to getting more women into the world’s most lucrative – but male-dominated – industries of STEM, automotive, aerospace, manufacturing and finance.

Read more about how the WTO, ITC and Institute of Export and International Trade push for better opportunities for women in trade.

World Trade Organization (WTO) Slashes Forecast for Global Trade in 2022

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The Russia-Ukraine war has damaged the world economy at a critical juncture as the coronavirus pandemic - and Chinese lockdowns specifically - continues to weigh on the recovery.

The World Trade Organization (WTO) on Tuesday, 4/12/22, revised down its forecast for global trade growth this year to 3% from 4.7% because of the impact of the Russia-Ukraine war and warned of a potential food crisis caused by surging prices. 

World Trade Organization Cuts Its Global Trade Growth Forecast for 2022

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The Ukraine war has led the World Trade Organization (WTO) to cut its global trade growth forecast for this year.

The previous 4.7% growth forecast has been cut to 2.5% due to "the impact of the war and related policies," said WTO boss Dr Ngozi Okonjo-Iweala.

The cut is also linked to continuing global supply chain problems that started as a result of the pandemic.

Dr Okonjo-Iweala told the BBC that although Russia and Ukraine only make up about 2.5% of global merchandise exports, they "are very, very significant in certain sectors."

Read on to learn how the Ukraine war to halve global trade growth, warns WTO.

U.S. Suspends Tariffs on Most U.K. Goods To Ease Trade Tensions

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The U.S. and U.K. will suspend tariffs for four months “to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization,” the two countries said in a joint statement.

The suspension of U.S. tariffs on U.K. goods, including whisky, will come into force on Mar. 8. The U.S. decision matches the U.K.’s unilateral move to cease applying retaliatory tariffs in January, which was a bid to de-escalate the conflict.

Note:  U.S. tariffs on a basket of European goods, including French wine and cognac, remain in force.

Read more on how the U.S. suspends tariffs on U.K. goods to ease trade tensions, especially between Airbus-Boeing.

Today in Global Small Business: Container Shipping is Booming Again

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What's affecting me, my clients, my colleagues and other global small business owners:

• The World Trade Organization (WTO)  highlights progress made on developing global trade and e-commerce.
• How President Biden must restore American trade leadership.
• Quote of the week: “Some people are so busy learning the tricks of the trade that they never learn the trade." – Vernon Law
• Cross-border paperless trade has great potential to not only grow trade competitiveness but also to address new challenges associated with e-commerce and the digital economy.  See what the United Nations (UN) and Enhanced Integrated Framework (EIF) are doing about it.
• Container shipping is booming again.  Will it last?
• The world's most important body of water.

How Women Benefit from Global Trade

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The World Trade Organization (WTO) and the World Bank have launched a joint, 189-page publication titled, ‘Women and Trade: The Role of Trade in Promoting Gender Equality,’ on how women benefit from trade and the role of trade in advancing gender equality.

The publication shares how trade can expand women’s role in the economy, which can be linked to higher levels of gender equality, increased wages, improved working conditions, and improved women’s access to education and skills.

The report uses labor data disaggregated by gender at the industry level for 72 countries as well as a database on gender-related provisions in regional trade agreements.

Women Entrepreneurs Grow Global®, a 501(c)3 nonprofit organization works with women entrepreneurs and business owners in helping them expand their businesses internationally and has known all along that women benefit from trade by earning more, paying more, employing more people and being more productive than firms that operate domestically.

wegg's mission is:  to educate, inspire and nurture women business owners and entrepreneurs worldwide on how to go global so they can run healthier businesses and create a new future for themselves, their families and their community.   wegg's vision is:  a world where every woman business owner has the opportunity and ability to take their business global wherever they may be located.

The Global Trade Barometer and Economic Impact

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Every component of the Goods Trade Barometer, which provides real-time information on the trajectory of world trade relative to recent trends, will be influenced by the economic impact of COVID-19 and the effectiveness of efforts to treat and contain the disease,” says the World Trade Organization (WTO).

The Geneva-based body’s latest forward-looking Goods Trade Barometer stood at 95.5, compared with a level of 96.6 in November. 

The WTO goes on to say that global trade in goods will likely remain weak in coming months as disruptions from the coronavirus outbreak in China stanch the movement of international commerce already slowed by tariffs and uncertainty.

Boosting International Trade for Small Businesses

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The World Trade Organization (WTO) says that helping small enterprises enter global markets "will go a long way to making the trading system more inclusive and improving the lives of individuals and communities around the world.”

WTO seeks to open trade opportunities for small firms.  Some of the biggest challenges for them on international trade include but are not limited to:

• Lack of appropriate information and skills
• Lack of trade finance
• Burdensome customs procedures
• High fixed costs

Read more about how the World Trade Organization wants to raise the voice of small enterprises in trade and enable them to prosper across borders.

Today in Global Small Business: The Hoffice Movement Spurs Better Use of Collective Intelligence

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What's affecting me, my clients, my colleagues and other global small business owners:

• American President-elect Trump's view of the world and trade.
• Rumors of Hillary Clinton's comeback and what that could mean for NY.
• What makes things cool?  Put your marketing cap on to figure out.
• Foreign brands rush into cross-border e-commerce. 
• Indiana wants to bring a World Trade Organization to its state.
• How the Swedes are ditching desks to work from strangers' homes (you read that right and this movement referred to as Hoffice could be a sign of the times ahead worldwide).

Is World Trade Growth Slowing?

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According to The Economist:

On September 27th the World Trade Organization slashed its forecast for growth in trade of goods from 2.8% in 2016 to just 1.7%, implicitly predicting that for the first time in 15 years, trade would grow more slowly than GDP. 

With anti-globalization sentiments heavy in the air, it's hard to see where this is headed.

Read more:  The Economist Explains:  Why is world trade growth slowing?

Related:  Economists worry that a new wave of protectionism in the digital age is hurting global growth

Today in Global Small Business: WTO Proposes Agreement to Support E-Commerce for SMEs

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What's affecting me, my clients, my colleagues and other global small business owners:

• How technology can help small businesses save time with automation and have a global reach.
• Why The International Monetary Fund has urged governments to take action to tackle a record $152tn mountain of debt mountain.
• Register for the 2nd Annual Global Small Business Forum held in Chicago Friday, October 21st.
• World Trade Organization proposes a new global agreement to support e-commerce for SMEs.
• Why Walmart is doubling down on e-commerce investments and what we can learn by it.
• Should Alibaba be put back on the list of sellers of fakes?

The Smallest of Businesses Can Go Global If They Can Access the Internet

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The International Chamber of Commerce (ICC) ended the World Trade Organization’s (WTO's) first ever dialogue with the business community as an important step towards strengthening the global trade agenda.

The event identified a broad range of possible WTO initiatives to help boost trade-led inclusive growth, including, but not limited to:

SME growth
Business leaders encouraged the WTO to explore possible initiatives to make trade easier for small- and medium-sized enterprises (SMEs), going beyond trade facilitation reforms to identify where harmonized rules and end-to-end standards can help small businesses access global markets. Access to financing was also highlighted as a priority to support SME trade growth.

Adding to that, the International Chamber of Commerce's First Vice-Chairman Sunil Bharti Mittal said:  "The global nature of e-commerce means that the WTO has a vital role to play in the further development of rules and standards for this area. E-commerce has the potential to revolutionize global trade flows. Today, even the smallest of businesses can go global if they can access the internet."

Read the entire article:  ICC welcomes new dialogue with WTO; highlights options for multilateral trade

International Trade Promotes Growth and Development

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In a speech, “Charting a Course for Trade in an Uncertain Future," given by Director-General of the World Trade Organization Pascal Lamy at the Brookings Dialogue in Washington, D.C. earlier this month, he said:

Trade as a share of global GDP has risen from roughly 40% in 1980 to around 60% today. In the United States, a country long considered less dependent on trade than many others, the share has risen from 10% to 25% over the same period of time.  US exports of goods and services in the last 10 years have more than doubled to over $2 trillion. One reason for this dramatic expansion is that US exporters have entered new markets in a big way. When China entered the WTO in 2001, US exports to the Middle Kingdom were $20 billion. By 2011 they had increased more than five-fold to over $100 billion. 

Read the entire speech here.

Making Informed Decisions About the Food We Eat From Around the World

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The World Trade Organization (WTO) rules that country-of-origin labels will remain the same while the U.S. government continues to review the ruling.

The ruling, public advocates fear, could lead to trade sanctions against the United States or a watering down of the labels designed to tell consumers where their meat comes from.

U.S. statement:

The United States Trade Representative Ron Kirk put a happy face on the WTO ruling, “which affirmed the United States’ right to adopt labeling requirements that provide information to American consumers about the meat they buy.”

Read the entire article here.

Adapt to Global Trade

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In the past, China has taken a conservative profile in organizations such as the World Trade Organization (WTO). But now, its getting more adapted and flexing its muscles to global trade rules, as exemplified in its recent complaint to the WTO on an anti-dumping dispute with the European Union (EU).

Read more here and here.

World Trade Organization 2007 Data and Foreign Trade Statistics

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Due to reader inquiries (and the media), we went on a virtual mission to find direct links to trade data. The WTO has released two updated statistical publications. This year’s edition of the annual “International Trade Statistics," released electronically on 12 November 2007, has a more user-friendly presentation and expanded content on trade in services

Also available electronically is a fabulous updated “Trade Profiles," which offers a quick but comprehensive look (197 pages!) at WTO members’ trade statistics and policy measures and those of countries negotiating WTO membership.

Go here to access WTO information.

If you want or need more data, the best of the best is published by U.S. Census Bureau, Foreign Trade Statistics.