This monthly update provides a snapshot of recent developments in international trade:
1. First-Ever COP Trade Day Focuses on Clean Technologies and Sustainable Finance
- The inaugural Trade Day at the COP climate talks explored the role of international trade in supporting technology transfers and global cooperation to achieve the 2030 climate goals.
- Discussions emphasized the potential of trade to promote clean technologies and enhance investments in energy efficiency, particularly within global value chains.
- Sustainable finance, which considers environmental and social impacts, was discussed as a means to facilitate eco-friendly trade and unlock green investment opportunities in low-income countries.
- The World Trade Organization (WTO) released “Trade Policy Tools for Climate Action,” covering ten policy areas aimed at improving the flow of climate-friendly goods and services, decarbonizing supply chains, and enhancing resilience to climate-related challenges.
2. EU-Mercosur Trade Deal Faces Further Delays
- The EU-Mercosur trade treaty, in the making for over two decades, encountered another hurdle as EU Trade Commissioner Valdis Dombrovskis canceled his trip to Brazil to finalize the agreement.
- Disagreements over environmental targets, notably concerns raised by French President Emmanuel Macron, have contributed to delays in concluding the deal.
- A change in government in Argentina has also affected negotiations, as the new cabinet must approve the agreement.
- Despite challenges, the European Commission remains engaged in intense negotiations and progress has been reported. Spain, holding the EU presidency, aims to secure an agreement this year.
3. Global Merchandise Trade Shows Signs of Recovery
- The WTO’s Goods Trade Barometer indicates a recovery in global merchandise trade volumes following a recent downturn.
- Key drivers of this rebound include increased automobile sales and production, as well as trade in electronic components.
- However, mixed economic indicators and rising geopolitical tensions continue to create uncertainty regarding the near-term trade outlook.
4. Additional Updates in Brief
- Brussels may postpone import tariffs on electric vehicles traded between the EU and UK by three years, following opposition from the automobile industry.
- EU member states, including Spain and Italy, have expressed concerns about a proposed shipping emissions charge, fearing it may redirect maritime trade away from EU ports.
As international trade undergoes transformations and faces challenges, staying informed about these developments remains crucial for businesses and policymakers.
Explore the newest supply chain news at The Supply Chain Report. Visit ADAMftd.com for free international trade tools.
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