Impediments To Foreign Trade

First, global economic factors

Weak global economic growth: According to the International Monetary Fund (IMF), global GDP growth is expected to be 2.9% in 2024, down from 2023. This weak growth has led to weaker external demand, putting pressure on foreign trade.

The rise of trade protectionism: The implementation of trade protectionist policies has led to the increase of tariff and non-tariff barriers, which constitutes an obstacle to international trade. For example, Sino-US trade frictions, Sino-European trade frictions, etc., have had a negative impact on foreign trade.

Second, geopolitical factors

Geopolitical tensions: Conflicts and tensions in some regions have blocked trade routes and even triggered trade disruptions, bringing great uncertainty to international trade.

Increasing variables of non-economic factors: geopolitical factors may spill over into the economic and trade field, interfering with the smooth operation of the global industrial chain and supply chain to varying degrees.

Third, trade barriers

Tariff barriers: In order to protect their own industries, some countries have set high import tariffs, increasing the import cost of foreign trade enterprises.

Non-tariff barriers: including technical requirements, standards and certifications, import quotas, etc., make it more difficult for foreign trade enterprises to enter their markets for their products.

Fourth, supply chain issues

Global supply chain disruptions: Global public health events such as the COVID-19 pandemic have caused logistics disruptions and supply chain disruptions, which have had a major impact on foreign trade.

Rising labor costs: As labor costs rise in some countries, some labor-intensive industries begin to move to other regions with lower costs, affecting the global supply chain layout.

5. Restrictions of domestic policies and regulations

E-commerce policy restrictions: The regulatory policies on cross-border e-commerce have become stricter, such as strengthening the tax administration of cross-border e-commerce and increasing the compliance costs of foreign trade enterprises.

The rise of protectionist policies: some countries have begun to adopt protectionist policies, set trade barriers, and restrict imported goods, increasing the import and export costs of foreign trade enterprises.

6. Environmental protection pressure

Improvement of environmental standards: With the improvement of environmental awareness, some countries have increasingly high requirements for the quality and safety of imported products, increasing the cost of inspection and certification for foreign trade enterprises.

Green trade barriers: Some countries set green trade barriers to imported products on the grounds of environmental protection, restricting products that do not meet their environmental standards to enter the market.

To sum up, today's obstacles to foreign trade include global economic factors, geopolitical factors, trade barriers, supply chain problems, domestic policy and regulatory restrictions, and environmental protection pressure. These factors are interwoven and jointly affect the development of international trade.