Discussion Board

The Deterioration of Global Trade

Global trade is on a decline for several reasons, a few of which stand out. Global trade is expected to reach a record low growth since 2009 by the end of 2019. The World Trade Organization estimates that world trade in merchandise will expand by only 1.2 percent in 2019. That being the weakest since 2009 when it decreased by nearly 13 percent as a result of the 2008 economic crisis. This slowdown in just one part of the global trade shows trends towards further slowdown and a chance at a recession. Additionally, the trade war between China and the United States has continued to intensify, threatening job security and livelihoods worldwide. Because of the continuation of rising tariffs between the two economic powerhouses, both countries have seen a decline in commercial activity. The tariffs on each of their exports are raising the cost of business and has been discouraging investing activities in each country. Another big factor in the slowdown of the global economy is the potential exit of Britain from the European Union. Fear that this exit could happen without a deal that would govern commerce across the English Channel. Without a deal in place, trade could slow down dramatically with the British, causing a substantial ripple effect in global trade and the overall global economy. These are a few of the many factors concerning economists with the deterioration of global trade as the global economy as a whole continues to slow down.

 

Source: https://www.nytimes.com/2019/10/01/business/wto-global-trade.html

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