TRADE UPDATE #126

Trade amidst Climate Change

30/07/2021

Recently, when the European Union announced its plan to impose the carbon border tax on imports from countries such as India that do not have strict climate-related norms, the proposal garnered global attention. And once again, the world began talking about climate change and its growing consequences on international trade. One clear example of how the climate crisis will affect trade as we know it is the ongoing situation in Brazil. The South American nation's erratic weather has affected sugar production, among many other crop harvests, in turn, giving an advantage to Indian sugar traders who have managed to crack deals from buyers as early as five months in advance. Even the massive floods that wreaked havoc in China and Western Europe last week are likely to disrupt the supply chain due to the broken railway links connecting to the major ports, causing delay in cargo movements.

As though the global shipping industry wasn't already navigating through rough waters, a study revealed that if actions are not taken to deal with the shortage of seafarers, it will further destabilize the supply chain. Since most of the world's merchant sailors hail from the Philippines, Indonesia, and India, where there is a slow vaccination drive and resurgence of covid-19 cases, experts believe the issue will soon become serious.


INTERNATIONAL TRADE

How EU’s proposed carbon border tax will work & why India is among the nations opposing it

Last week, India urged G20 members having per capita greenhouse gas (GHG) emissions above the global average to bring it down to the world average, in order to vacate carbon space for developing nations.


COVID-19 IMPACT

Explained | Why IMF slashed India’s growth forecast sharply in latest economic outlook

The International Monetary Fund (IMF) slashed India’s growth forecast for 2021-22 sharply on Tuesday after releasing its latest World Economic Outlook (WEO) report.


ECONOMY

Exports set to leap in FY22 as India's biggest markets import more, global trade rises: Ind-Ra

Buoyed by strong momentum, rising import demand across India's major export destinations and favorable global trade outlook, India's exports are poised to see major growth in FY22(2021-22), India Ratings & Research or Ind-Ra has said.


COMMODITY

Exclusive-Indian traders sign sugar export deals in advance as frost hits Brazil

Indian traders for the first time have signed sugar export contracts five months ahead of shipments as a likely drop in Brazil’s production prompted buyers to secure supplies from the South Asian country in advance, five trade sources told Reuters.


SHIPPING & LOGISTICS

World faces shortage of merchant sailors to crew ships: Study

There could be a shortage of merchant sailors to crew commercial ships in five years if action is not taken to boost numbers, raising risks for global supply chains, a report said on Wednesday.


OTHER NEWS

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