He highlighted that trade globalization along with weaponization has caused job losses and impacted quality of life in many countries.
About Trade Weaponization
- It refers to the use of trade as a tool of foreign policy and occurs when a country uses its trade leverage over another nation coercing it to take actions for a specific outcome.
- It aims at fulfilling national security objectives, geo-political gains, etc.
Key Tools for Trade Weaponization
- Creating Impediments to Trade: Preventing customs clearance, obstacles concerning environment, biosecurity, intellectual property standards, etc.
- E.g., In 2022, China blocked the imports of citrus, fish and other foods from Taiwan.
- Sanctions and Embargo: Selectively cutting off imports and exports.
- E.g., USA’s Countering America's Adversaries Through Sanctions Act targeting Iran, Russia, and North Korea.
Consequences of Trade Weaponization
- Protectionism: Involves tariff impositions on products imported from a country. E.g., China Shock 1.0 and 2.0 have prompted tariffs against Chinese products.
- Trade War: Occurs when the countries involved impose retaliatory tariffs on each other. E.g., Witnessed between the USA and China since 2018.
- Supply Chain Disruptions: Witnessed during the times of COVID-19; etc.
Measures to counter Trade Weaponization
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