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How have global trade policies impacted the economy of emerging countries in recent years?

Nelda Laurant

Global trade policies have had a major impact on the economy of emerging countries in recent years. For many of these countries, international trade is a crucial source of economic growth and development. However, changing policies, tariffs, and trade agreements can have both positive and negative effects on these nations’ economies.

Perhaps one of the most significant factors affecting emerging economies in recent years has been the trade conflict between the United States and China. The two countries have levied tariffs on each other’s goods, which has resulted in higher prices for consumers and reduced demand for products in both countries. Emerging economies such as Brazil and Mexico have been impacted by this trade dispute due to their reliance on exports to both the US and China.

On the other hand, some emerging economies have benefited from changing global trade policies. For example, the United States Mexico Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA), and this has had significant positive effects on the Mexican economy. The new trade agreement has helped to enhance US-Mexico trade relations, increase investment in Mexican industries, and create new jobs.

Another example of global trade policies affecting emerging economies is the Belt and Road Initiative (BRI), an ambitious infrastructure project created by China to connect Asia, Europe, and Africa. Many emerging economies in Asia and Africa have been able to join the initiative, which has brought significant investment and development to these countries.

However, there are also negative effects on emerging economies due to global trade policies. Some countries may not have the resources or political power to negotiate fair trade agreements, which can leave them at a disadvantage. Additionally, some emerging economies heavily reliant on certain exports may suffer if they face tariffs or other trade restrictions.

In conclusion, global trade policies have a significant impact on the economies of emerging countries. While policies like the US-China trade conflict can have negative effects, new trade agreements and initiatives such as the USMCA and the BRI can offer opportunities for these countries to benefit from increased investment, trade, and development. Ultimately, the key is for emerging economies to stay informed about changing global trade policies and to be proactive in seeking out opportunities for growth and development.