A best case trade scenario…

Clara Young
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: +0.6% Q1 2019 year-on-year
Consumer price inflation: 2.3% May 2019 annual
Trade: +0.4% exp, -1.2% imp, Q1 2019
Unemployment: 5.2% July 2019
Last update: 8 July 2019

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