Global Trade Turmoil

Abstract

This paper provides a rapid assessment of several major emerging trends in international trade with the objective of better appreciating their implications for the world's poorest, smallest and most vulnerable economies, such as least developed countries (LDCs), small states and sub-Saharan Africa. The analysis highlights that, although the tariff war involving China and the USA draws intense focus, world trade is also experiencing structural changes, complicating the situation further. In the decade since the global financial crisis of 2008, LDCs, small states and sub-Saharan Africa country groups’ combined trade have hardly expanded. Furthermore, the recent slowdown in international trading activities has reinforced the marginalisation of these groups of economies in global trade. In drawing policy implications, this paper argues that attaching less importance to trade is not an option for LDCs, small states and sub-Saharan Africa. Rather, these countries should remain focused on exploring trading opportunities, developing trade capacities and strengthening trade multilateralism.