The pandemic transformed ‘being positive’ is the biggest negative sentiment of 2020 with the horrendous Covid Impact on Global Trade.
The viewing, reviewing and chewing dilemma
- To avoid metastasizing COVID-19, the entire world faces an unparalleled threat engendering from the Lockdowns. The indisposed corporate world will also need to address unfamiliar situations and look for solutions. The tough time urged the government and other regulatory bodies to figure out strategies to ebb the harm and help to restore the economy. Covid-19 impact on global trade in the globalized world post-Covid has now shifted geo-economies forever.
- Amid controversies regarding the usefulness of multilateral organizations such as the World Health Organization, questions are also being asked about the sustainability of the World Trade Organization, the Food and Agricultural Organization, and many more.
- Covid-19 impact on global trade has set unnerving experiences across the countries and the countrymen. When nations become protectionist and look inwards, not only will global trade be impacted, it will see a switch in paradigms. Many existing trade agreements will now meet new policymaker’s scrutiny, and future accords will now be concluded amid increased protectionist policies. It is in this perspective that one has to read the views expressed this week by Minister of Foreign Affairs S. Jaishankar and Minister of Commerce Piyush Goyal.
- Jaishankar’s remarks on former trade agreements being unjust to New Delhi by not allowing India to unlock its maximum potential are reflective of the increasing global trend of protectionist measures. Indian manufacturing is facing too many issues and is unlikely to take-off, unless these are fixed.
International trade – re-engineering and re-enrichment
- The phenomenon of companies leaving China during the pandemic and preferring other Asian countries testifies to the narrow opportunities offered to international companies by Indian manufacturing. Very few companies that have left China following the coronavirus pandemic have chosen to larboard their manufacturing market in India, given the government’s meritorious effort to boost India’s business-friendly rating.
- Global trade is about to undergo a full redesign with the first concept where countries will be turned on their heads regarding export and import measures based on global economics. The major result of this would also be the capacity and legitimacy of the WTO to determine how the world economy acts. It remains to be seen if it will be pressured to revamp or disowned by the countries. The U.S. will be sponsoring the reform as it aims to preserve jobs, economy revival and hope simultaneously to curb the china’s economy. At the top bizarre is the US which sponsored China’s entry into the organization that agreed on international trade rules in 2001.
- India and the US have been negotiating a free trade agreement over many years, yet, no progress has been made. And now it’s uncertain that it will take place.
COVID-19 shot a baleful glaring glance in the geo-economies with an eldritch screech. The situations are wavering between ‘asymptomatic’ and ‘symptomatic’ with the quarantined world economies.
Read this article also: Economic help by Indian government to lessen coronavirus impact