A best case trade scenario…

OECD Observer

Given current trade tensions, this question might seem fanciful, but what would happen if tariffs were reduced, rather than raised? 

According to the OECD Economic Outlook released 30 May, if we reduced tariffs to the lowest level applied in G20 countries, costs would go down by 2% and global trade would rise by more than 3%. And China would not only experience the largest rise in trade, but its imports would outstrip exports. That would be good news for exporters elsewhere, and jobs too.

Reference

OECD (2018), OECD Economic Outlook, Volume 2018 Issue 1: Preliminary version, OECD Publishing, Paris, http://dx.doi.org/10.1787/eco_outlook-v2018-1-en.

©OECD Observer June 2018




Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.2% Aug 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.4% Aug 2020
Last update: 13 Oct 2020

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