The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Treasury

Regional and domestic trade growth prompted by more than protectionism

The threatened imposition of US-China trade tariffs this week is the most obvious sign of increasing protectionism, resulting in a push towards regional trade, but with consumers prioritizing speedy delivery, the move to source locally has other drivers.

China-US-trade-containers-780

The HSBC Navigator: Now, Next and How for Business report surveyed more than 6,000 companies internationally on the trade environment.

Asked for their views on the state of the current market, 61% of respondents thought countries were becoming more protectionist. Companies are looking towards their close neighbours to forge trade partnerships, with 74% of trade in Asia-Pacific and Europe being conducted within the region.

However, the view that protectionism might be disastrous for trade seems to be overstated.

The HSBC study quotes World Trade Organization (WTO) figures, which show its members are putting in place fewer trade-restrictive measures than in previous years. There were an average of 20 restrictive measures implemented each month in 2015 across WTO members, compared with nine measures per month in the year to October 2017.

Vinay-Mendonca-HSBC-160x186

Vinay Mendonca,
HSBC

Vinay Mendonca, head of global traditional trade product at HSBC, says there is still considerable optimism about the prospects for trade.

“Companies are concerned about the potential impact of protectionism, but are still bullish on the potential of trade, with 77% of those polled globally forecasting growth,” he says.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree