World Bank Development Economics’ Post

In a new research, we uncovered a new channel of the resource curse: resource rich developing countries tend to have more monopolized imports. The expanded import market coupled with weak institutions provides strong incentives for import market capture.

In May 2024, the EU's agri-food trade surplus stayed stable at €5 billion, slightly down from May 2023. Exports were €19.7 billion, with growth in olives and olive oil but declines in vegetable oils and cereals. Imports were €14.7 billion, up 3% from May 2023, driven by increases in cocoa products, fruit, nuts, and olive oil. Top trade partners included the United States, United Kingdom, China, Brazil, and Ukraine. These are the main findings of the latest monthly agri-food trade report published today by the European Commission. https://lnkd.in/gR8EAhKf

Pakistan Sugar back in the news Pakistan has recently made significant moves in its sugar export policies, reflecting a strategic shift in its approach to international trade. In a notable decision, the country has refused to provide subsidies on sugar exports to Tajikistan. This decision comes amidst a broader context where Pakistan's Advisory Board has conditionally allowed the export of 500,000 tonnes of sugar. Refusal of Subsidies to Tajikistan Pakistan's refusal to subsidize sugar exports to Tajikistan marks a pivotal moment in its trade relations. This decision underscores the country's commitment to maintaining a balanced trade policy, ensuring that domestic needs are met without overly burdening the national budget. The move is seen as a step towards fostering sustainable trade practices, where subsidies are carefully managed to avoid market distortions. Conditional Export Approval Concurrently, Pakistan's Advisory Board has given the green light for the export of 500,000 tonnes of sugar, albeit with certain conditions. This approval is contingent on ensuring that domestic sugar prices remain stable and that the exports do not adversely affect the local market. The board's decision reflects a cautious approach, aiming to strike a balance between meeting international demand and safeguarding the interests of domestic consumers. Broader Context and Implications These developments come at a time when Pakistan is navigating a complex economic landscape. The country is keen on expanding its export base while also managing its fiscal deficit. The decision to conditionally allow sugar exports while refusing subsidies to specific markets is part of a broader strategy to enhance trade competitiveness and fiscal prudence. Interesting Facts Domestic Sugar Prices: Pakistan's domestic sugar prices have been a subject of scrutiny, with the government aiming to stabilize them to protect consumers. Trade Relations: The decision to refuse subsidies to Tajikistan is part of a broader effort to renegotiate trade terms with various countries, ensuring mutual benefit. Export Potential: The conditional approval for sugar exports highlights Pakistan's potential to become a significant player in the global sugar market, provided it can manage domestic supply and demand effectively.

Dataset Of The Month: Import Demand on the Rise: Advanced Economies Experience Subtle Growth In the latest Netherlands Bureau for Economic Policy Analysis (CPB) World Trade Monitor, the imports index appears to uncover some small signs of growth for international goods emanating from across the world’s most advanced economies. https://lnkd.in/enGk48Xq

Vietnam logs a record trade surplus for the 8th consecutive year - this time three times higher than in 2022 Vietnam achieved a record trade surplus in 2023, estimated at US$26 billion and reflecting the country's growing economic strength. This accomplishment signifies the highest trade surplus recorded for the nation in many years. Surprisingly to some, the agricultural sector represented one of the main drivers for the 2023 record number. The impressive trade performance is a testament to Vietnam's robust export activities and its ability to maintain trade resilience amidst global economic challenges such as those seen before the ongoing recovery in 2H of 2023 and onwards. https://lnkd.in/ghJ-FaNS

U.S. Trade Gap Expands America’s trade deficit reached $68.9 billion in February, the highest disparity in almost a year. The Hill says import values exceeded exports by more than analysts were expecting. The total value of imports hit $331.9 billion, while exports were $263 billion, and the overall deficit rose 1.9% during the month. Republicans on Capitol Hill have expressed frustration with what they call an unambitious trade strategy and inadequate initiatives undertaken by U.S. Trade Representative Katherine Tai. While they expect trade fluctuations, Republican senators wrote to Tai saying the current sharp decline in America’s agricultural exports is directly attributable to a trade strategy that doesn’t meaningfully expand market access or reduce barriers to trade. February trade data shows a year-to-year decline of $729 million in the foods, feeds, and beverages category of national exports. Soybean exports dropped by $1.9 billion, wheat dropped by $429 million, and dairy products by $97 million. #agriculture #agriculturetrade

Global Trade Declines in July 2024: Export Orders Hit by Shipping Delays and Supply Chain Issues #GlobalTrade #SupplyChain #July2024 #Export #Import https://lnkd.in/dpuZzWJi

Global Goods Trade Rises 1% in Q1 2024: WTO Report. Explore the latest trends and insights in international trade with KyraImEx. #GlobalTrade #Economy #WTO #Export #Import https://lnkd.in/dywhB3Gq

United Nations Economic and Social Commission for Western Asia (ESCWA) New Report Highlights Key Challenges and Opportunities for Arab Trade The latest report reveals an 11.5% decline in the value of total Arab merchandise exports, amounting to $1.4 trillion in 2023, underscoring the urgent need for enhanced trade strategies. Arab exports’ share of global exports stands at 5.8%. The region remains a significant exporter of energy products, with crude oil and natural gas comprising 60% of total exports. The decline in crude oil prices (down 10%) and a substantial drop in natural gas prices (down 63%) in 2023 have notably impacted export values. Imports from China topped the list at $207 billion (17.3%), followed by the UAE (8.6%), the USA (6.2%), and India (5.7%). Key imports included machinery, equipment, cell phones, petroleum derivatives, jewelry, turbojets, and vehicles. Saudi Arabia and the UAE are the leading exporters within the Arab region, with Saudi Arabia exporting $53.7 billion and Oman $8.5 billion. Intra-regional trade has rebounded to pre-2020 levels despite a decline in 2023. Agricultural products, processed foods, pharmaceuticals, and base metals are growing sectors through intra-regional trade. For instance, Egypt’s metal industry exports 37% of its output within the region, and Saudi Arabia exports 27%. Jordan, Lebanon, and Sudan export significant shares of their agricultural products to Arab markets. Challenges include export concentration and a limited product range. To address this, diversification of export products and markets is essential. Food security remains a significant issue, requiring government incentives for farmers, promotion of vital crops, and diversification of import sources. The Arab region’s net-food deficit is a chronic issue that worsened by 26.4% in 2022. However, in 2023, food imports slowed, improving the net food balance to $90.9 billion. Saudi Arabia had the largest food import deficit at $21.3 billion, followed by Egypt at $9 billion and the UAE at $8.3 billion. Smaller deficits were recorded by the Comoros, Djibouti, and Mauritania. Since 2012, the importation of solar panels in Arab countries has seen a continuous upward trend. After a decline in 2020, import figures surged by approximately 500%, reaching a record high of $3.7 billion in 2023. The value of LED light imports also rose steadily, exceeding $1.2 billion in 2023. Hybrid and electric vehicle (EV) imports have grown significantly since 2018. In 2023, hybrid vehicle imports surged by 80%, reaching $3.6 billion, while EV imports increased by 36%, reaching $2.7 billion. These trends highlight the region’s shift towards sustainable and green technologies, reflecting a broader global movement towards energy efficiency and environmental sustainability. #trade #exports #arabregion #menaregion #mena #egypt #saudi #uae #energy #sustainability #greentechnology #foodsecurity #economicgrowth #intraregionaltrade #globalmarkets #electric

Trade activity slips to N$21.1 billion in March: According to the latest trade statistics released by the Namibia Statistics Agency (NSA), total trade activity, encompassing imports and exports, dipped to N$21.1 billion in March 2024, marking a 6.8% year-on-year decrease. The decline primarily stemmed from a reduction in exports over the same period. However, there was a monthly upswing in exports, rising from […]