Global Trade Outlook and Statistics Report Released by World Trade Organisation

Posted 11 Apr 2024

2 min read

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.

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

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