Commentaries |
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“ To penalize smaller economies who do not have the capability to trade equally with the US risks destabilizing traditional growth parameters.” |
Glyn Hughes |
The International Air Cargo Association( TIACA)
Glyn Hughes
Director General www. tiaca. org
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The World Bank published a study illustrating that more than 1 billion people have been elevated out of extreme poverty since the 1990s, thanks to the growth of the global economy. Manufacturers have leveraged efficient connected supply chains, both air and maritime, to enable optimized production and access to global markets and, more specifically, an expanding consumer base. |
Integrated economies enhance understanding of our global community neighbors and are the cornerstone of future collectiveness and cohesiveness of economic and social ecosystems.
Open and free trade is the bedrock for continued economic prosperity and growth. However, the 47th US presidential administration is seeking to rewrite international trade frameworks by the introduction of protectionist measures, specifically tariffs, targeting countries with whom the US has a trade deficit.
E-commerce has also come under the spotlight for action as the de minimis level of $ 800, below which individuals could import goods without paying duties or taxes, has been removed.
The world’ s largest economy by virtue of its size cannot achieve parity with each of its trade partners.
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National GDP per capita, population size, maturity of consumer base and availability of resources are all variables which create the notion of trade. To penalize smaller economies that do not have the capability to trade equally with the US risks destabilizing traditional growth parameters.
It may also actually have the inverse effect to that which was originally intended, as smaller economic partners will seek new markets and new partners with easier, less restrictive trade practices. Consequently, the global economy could see two significant strategic actions in the coming years: China plus one to de-risk production, as China accounted for about 26 % of global economic production in 2024, and US plus one as countries and manufacturers seek out new consumer markets to diminish reliance on the world’ s largest economy.
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