Tariff tensions see rise in regional resilience

As global trade tensions increase, Asia-Pacific economies should rethink strategies to protect growth, business and development gains, Armida Alisjahbana.

The global trade environment is changing rapidly and on Asia and Pacific Fronts. The new US tariffs announced in April sent echoes through global value chains, threatening export gains, jobs and investments. For economies that are already struggling to meet Sustainable Development GoalsAdds additional obstacles to overcome this.

Many countries in the region are deeply integrated into global value chains. Cambodia and Viet Nam, where more than a quarter of the exports are connected to the USA, can see significant decreases in trade income when retaliation tariffs or deductions increase. Lao PDR, which is a part of the up flow supply chains, countries such as Lao PDR, Mongolia and Brunei Darussalam face indirectly but potentially larger stroke effects.

For economies that have high -confidence in imported inputs and imported inputs, the tariff burden may be particularly important in contrast to the larger economies with domestic markets or more diversified export structures that are more ready to absorb trade shocks. Especially in smaller and less diversified economies, export -oriented sectors such as textile and machinery are particularly vulnerable.

These sectors are generally labor -intensive, disproportionate employment loss risks that may face many sub -qualified and female workers. Meanwhile, business investment and strategic decision -making potentially restrict future economic growth by influenced by unpredictability.

Although the intensity of these effects changes, the wider conclusion is clear: the increasing uncertainty reduces regional trade flows, deterrences investment and complicates long -term development.

In order to respond effectively, considering this developing landscape, policy makers should receive a longer term view of reforms and apply forward strategies even when they seek stability in the near term. An important step is to deepen evidence -based analysis to determine where risks and gaps are, including evaluating the exposure to tariffs through value chain connections. Special support will be vital for challenging export sectors, especially for micro, small and medium -sized enterprises.

Governments should also be able to facilitate trade digitalization-security procedures to reduce trade costs and increase productivity, to adopt cross-border paper-free trade systems, and to ensure uninterrupted data streams between supply chains.

At the same time, governments should target wider structural flexibility and diversify trade partners and products in the long term and reduce their excessive importance in any market. These steps can pillow the impact of future trade changes and help smaller exporters to remain competitive.

The expansion of trade in digital services such as financial, business and various professional services offers a promising way. These sectors are less affected by their latest trade tensions and can help balance some disruptions in goods trade. Countries can also give priority to policies that encourage internal consumption, promote innovation and address the supply -side restrictions, thus expanding their development base and reducing vulnerable vulnerable to external shocks.

Strategic potential may lie in a possible reorganization of global supply chains against Asia and Pacific. Countries that have graduated from the least developed status and face the loss of trade preferences, and the middle -income countries that try to raise the value chain can benefit from new ways and invest in economic diversification and industrial upgrade.

More basically, policy consistency, stability and predictability should continue to be the key to trade, investment and employment contracts. In an environment where uncertainty weakens economic confidence, it is more important than ever to support a transparent, multilateral, rule -based system, especially for smaller or more exposed economies.

Regional cooperation and integration will be increasingly critical. Strengthening in -regional trade and investment can reduce exposure to global disruptions and help create more flexible economic ecosystems. Deeper participation in sub -regional mechanisms such as the South Eastern Nations Union (ASEAN) and mega trade agreements such as regional comprehensive economic partnership (RCEPand a comprehensive and progressive agreement for trans-passing partnership (CPTPP) With initiatives such as the United Nations Asia and the Pacific Economic and Social Commission (To escape‘S Framework Agreement on facilitating the transmission of cross -border paperless tradeoffers a forward way.

In order to strengthen connection and competitiveness, regulatory convergence and harmony, advanced supply chain connections and cross -border trade digitalization should be given priority. With limited trade negotiations and policy capacities, governments may consider reducing or exempt tariffs to their property to help smaller and less developed economies. As countries wander in a more variable global environment, such cooperation will be very important to support policy adaptation to changing dynamics.

The Asian-Pacific region has returned from past crises, but today’s challenges require coordinated, forward-looking responses. With the right policies and reinforced regional partnerships, countries can turn the existing trade winds into the opportunity to create more inclusive, diversified and flexible economies.

Escap is ready to support countries in this effort through data -oriented tools such as technical assistance, regional dialogue platforms and commercial intelligence and negotiation consultant ((regional dialogue platforms and negotiation consultant.Tina) And Value chain analysis helps governments to identify security vulnerabilities, give priority to interventions, and coordinate policy responses.

Now the decisions taken will determine whether the region is more powerful or more vulnerable in the reshaped global trade environment.

https://www.youtube.com/watch?v=c6-wefx5ycq

Armida is Salsiah Alisjahbana, the United Nations Secretary and the Secretary General of the Pacific Economic and Social Commission (escape).

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