Thursday, January 16, 2020

More Trade Disruptions

1.I   I expect to see a lot more disruption in trade, both imports and exports. This will prove to affect a lot of boardgame publishers, especially those launching new games via the Kickstarter channel. Since most of them use China for sourcing the manufacture of their launched games, disruptions in the channel will greatly affect their logistics and pricing. The industry dodged a pricing bullet with the delay by the administration of a tariff on boardgaming (and other related products) imported from China but neither nation has signed off on even the touted Phase One of an agreement. The president has said he is in no rush to sign off on an agreement and we could see a delay in one until after the 2020 election. More concerning than that though, at least to a lot of experts, is the neutering of the WTO trade courts by America’s decision to block the appointment of judges to the court, not only under the Trump administration but also the Obama and Bush ones. This deprives the court of a quorum, forstalling it from making rulings on trade disputes. Thanks to the court serving as an impartial referee (although the US argues otherwise and has made its displeasure known by blocking judge appointments), the last 50+ years have seen tremendous growth in international trade, aided by the arbitration of the court, reducing instances of trade wars and allowing multilateral agreements to flourish. With the projected demise of the court in the next few years, I would expect to see a return to greater reliance on bilateral agreements and more instances of stronger economies imposing agreements on weaker ones.

No comments:

Post a Comment