In addition to the united states and China, protectionism affects businesses all over the world

Paris – The trade disputes between the United States and China is just the tip of the iceberg. Protective measures, and the resultant decrease in the global trade these are some of the major risks to which companies and governments are to meet in 2020, according to the annual survey of Coface, insurance claims processing. The study was presented this week at an event in Paris, France.

The past year has been marked by the first decline in international trade for 10 years, the slowdown in the global economy and the rise of the rhetoric of protectionism.

According to the company, between 2018 and 2019, more than a thousand protectionist measures that have been implemented around the world, or about 40% above that of the average of the previous three years. The measures are in addition to the establishment of fees for the imports, and subsidies to domestic industries, for example.

While the trade dispute between the United States and in China, they came to an agreement at the end of this past year, it has attracted the attention of the world, the two countries account for only 23% of the protective measures taken in the period.

The growth of the global hath known the mind of 0.75 percentage points over the past year to 2.5%, and is expected to continue to shrink this year, about 2.4 per cent, according to estimates by the Coface. Global trade is expected to grow only 0.8% for the year as a result.

The global instability that contributes to the increase in the volatility of the price of commodities such as agricultural products, metals, crude oil, these products are highly integrated into the global economy. The price of the steel they should continue to fall over the next six months, because of the growth of China, which is responsible for more than half of the demand for steel in the world, there must be only 5.8% on the year.

China must be held down for the outbreak of the coronavirus. The outbreak has affected sales during the chinese new year, which took place on the 25th of January, a period in which chinese consumers use to purchase, go out with friends and traveling. Because of the fear of the epidemic, many of you have left to travel, and to get out of the house.

Source: review

https://exame.abril.com.br/negocios/alem-dos-eua-e-da-china-protecionismo-afeta-empresas-em-todo-o-mundo/