In 2019, the volume of trade in the Asia-Pacific region decreased, and it happened for the first time since the global economic crisis of a decade ago. This is reported from the Economic and social Commission for Asia and the Pacific (ESCAP). Its experts believe that the current trend is a consequence of the tariff war. They hope a new agreement between Beijing and Washington will lead to the revival of trade in 2020.
the Volume of exports to the Asia-Pacific region as a whole declined by 2.5 percent, while imports - by 3.5 percent. A sharp reduction in exports was observed in the countries-oil exporters such as Iran and Indonesia, as well as in Japan, Singapore and Hong Kong, China.
In 2018-2019 in most affected those countries that are closely linked to China through global value chains. New import barriers lead to higher prices and reduced competitiveness of the companies involved in regional production networks.
Earlier ESCAP has estimated that the tariff war can lead to the decline in the gross domestic product (GDP) by about $ 400 billion worldwide and $ 117 billion in the Asia-Pacific region. These predictions can be confirmed, and the loss can be even more significant in the case that will not be found ways to reduce the trade tensions between the US and China.
She expressed hope that the recent trade agreement between China and the United States will reduce the political tension.
the media reported that on December 13 the US and China signed an agreement in the first phase of the bargain. Many believe that this step marked the termination of "trade wars".
a UN Representative said the implementation of the first phase of the agreement between China and the United States will increase the confidence of investors and consumers, and will lead to higher trade volumes in the region in 2020 by about 1.5 percent.
ESCAP is one of the regional economic commissions of the United Nations. It was established in 1947 to promote regional cooperation in economic and social spheres. Its headquarters is located in Bangkok, Thailand. The Commission consists of 62 countries – from Turkey in the West to Kiribati in the Pacific ocean in the East, from Russia in the North to New Zealand in the South.
In the countries-members of ESCAP as a whole is home to more than four billion people. Many of the projects of ESCAP are associated with the development of regional transport links, expanding energy cooperation, deepening cooperation in environmental and social issues.
