Five events that gave us something to talk about in terms of trade in 2023

Five events that gave us something to talk about in terms of trade in 2023

2023 has been a year of great uncertainty. From uncertainties due to geopolitical tensions to problems with world trade, they marked the news agenda of the 365 days that are about to end.

The year started with the news of the lack of semiconductor chips used in different electronic devices globally. Despite being a market with very rapid expansion, in The US only produces 12% of them. A figure that contrasts with the decade of the 90s when the North American nation had the power to produce 37%. But things change and the US participation has gone down.

China is the market leader in microchip manufacturing, but the US, to counteract that power in its nation, implemented a series of restrictions on exports to China and as expected, the Asian giant decided to open a dispute in the World Trade Organization. The nation led by Xi Jinping accused the Americans of stifling its technological and economic advances.

The one who was left in the middle of this entire dispute was South Korea, taking into account that the technology used by Samsung and SK Hynix, its main chip manufacturers, depends on some US patents, but here comes the complex part. of the matter and it is that 40% of the semiconductor chips it produces are exported to China. It’s time and this tension over chips is still latent.

Following the line of tensions. The war in Ukraine continues to affect world trade. In fact, the World Trade Organization shared in a report that in March prices rose significantly for products impacted by the war. There was also the withdrawal of Russia from its participation in the grain agreement of the Black Sea that at the time facilitated the export of 30 million grains and other products that prevented a global humanitarian crisis.

These days the reduction of transit through the Panama Canal has been a topic of conversation because the dry season has affected water levels. Many ships have had to wait for days and up to weeks to cross this important commercial route.

This has led to canal authorities also imposing restrictions on the amount of cargo they can carry across the canal. But all this behaves like a domino effectship traffic decreases, loads decrease and the global supply chain is delayed.

But not everything in 2023 has been so tense. In Europe there was white smoke regarding the post-Brexit trade deal between Great Britain and the European Union. Treaty reached aiming to address trade sensitivities and borders by introducing red and green lanes for imports between Northern Ireland and mainland UK.

On the other hand, and remembering a little about the climate crisis, the WTO is already talking about green trade. This year the topic of decarbonization was discussed of transport, green energy in Africa and the inclusion of small farmers in this approach.

All this in line with the Sustainable Development Goals that seek to ensure that Global warming until 2030 does not exceed 1.5 degrees Celsius.

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