What's the impact of COVID-19 on world trade?

The economic and social disruptions brought by coronavirus has greatly affected world trade in 2020. Overall, world trade recorded a drop in value of about 9 per cent, with trade in goods declining by about 6 per cent and trade in services down by about 16.5 per cent

The world trade in textiles shot up by a massive 34% amid the pandemic. During the year the sudden need for PPE (personal protective equipment) increased the demand for textile products such as masks and overall covers. China and Vietnam were the countries that gained market share in textile sector.

COVID-19 had adverse effects on the working environment of companies. Employees had to be seated at an increased distance from each other to reduce the spread of the pandemic while many were given the option to work from home till situation normalised. This led to an increase in demand for office equipment. Countries such as S.Korea, Taiwan, Thailand and Vietnam gained market share while Mexico, China, Japan saw an erosion.

Pharma products saw increased demand during the pandemic. Countries that witnessed a surge in trade of pharma products were China, Japan, Switzerland while US, Singapore lost market share.

World trade in food increased by 3 per cent in 2020. Canada and Mexico gained in this sector while China, European Union (EU) and the US lost competitiveness.

Apparel trade witnessed a decline of 12% in 2020 as lockdown and work from home disrupted demand. Vietnam, Malaysia, Turkey and Cambodia gained competitive edge while China and India lost market share.

COVID-19 led lockdowns brought the world to a halt resulting in weaker demand for road vehicles. China, S. Korea and the US gained market share while Canada, EU, Japan and Mexico lost their competitive edge.

World trade in transport equipment fell by a massive 35% in 2020, adversely affected by lockdowns in most parts of the world. Canada and China were the two countries that gained market share, while Brazil, Japan and Mexico lost share in world tally.

Energy sector was the biggest loser post COVID-19. It saw a decline of 38% in 2020. Countries that saw an increase in Energy trade were Canada, the US, Mexico, Russia while Saudi Arabia lost its market share.

Mudit Kapoor, Pragati Srivastava