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Jakarta Post

Rising uncertainty, more effective WTO needed

  • Lili Yan Ing

    -

Jakarta   /   Tue, June 5, 2018   /  09:15 am
Rising uncertainty, more effective WTO needed Shipping containers are seen at a port in Qingdao, in China's eastern Shandong province on April 13, 2018. (AFP/-)

After almost 70 years of trade liberalization, trade has been challenged. Global trade contracted by 10.6 percent and 2.3 percent in 2015 and 2016, respectively, and many claim the contraction was due to shifting exchange rates and falling commodity prices. In terms of volume, global trade recorded growth of 2.8 percent in 2015 and 2016. The multilateral system has been questioned, and even bilateral and regional free trade agreements (FTAs), perceived as alternatives to the multilateral system, have been defied. However, the trade slowdown has taken place over the course of decades, even before the global financial crisis in 2008 and the recent declines in commodity prices. Trade growth is slowing down and the role of trade in GDP is falling. Growth reached double digit figures in the three decades from 1960 to 1990. In the 1990s, the growth trend declined slightly to about 10 ...

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