Global Economy News
LAST UPDATE: May 16, 2025
APEC warns of tariff impact on trade as China, US trade reps meet
Reuters
APEC has issued a warning that escalating tariffs, particularly those imposed by the U.S., are significantly hindering trade growth among its member economies. The organization highlights that the uncertainty surrounding goods-related measures is adversely affecting both manufacturing and services trade.
Insight
The warning from APEC underscores the detrimental effects of protectionist policies on global trade. As APEC economies represent a substantial portion of global trade and GDP, the slowdown in trade growth due to tariffs could have far-reaching implications. This situation emphasizes the need for multilateral cooperation and the reduction of trade barriers to sustain economic growth in the region.
Trade Chiefs Jostle for Time With Greer at APEC Meet
Bloomberg
At the APEC trade ministers' meeting in Jeju, South Korea, trade chiefs from major economies are seeking meetings with U.S. Trade Representative Jamieson Greer. The focus is on negotiating bilateral agreements amidst the backdrop of U.S. tariff policies.
Insight
The high demand for meetings with the U.S. Trade Representative reflects the significant influence of U.S. trade policies on global economic dynamics. Countries are eager to secure favorable terms and mitigate the adverse effects of tariffs on their economies. This scenario highlights the strategic importance of diplomatic engagement in navigating complex trade landscapes.
WTO chief warns US bilateral tariff deals could put trade principle at risk
Financial Times
WTO Director-General Ngozi Okonjo-Iweala has expressed concerns that the U.S.'s approach to establishing bilateral tariff agreements may undermine the 'most favored nation' principle, a cornerstone of the WTO's multilateral trading system.
Insight
The WTO's warning signals potential challenges to the integrity of the global trading system. Bilateral agreements that deviate from established multilateral principles could lead to fragmentation and increased trade disputes. Upholding the 'most favored nation' principle is crucial for maintaining a fair and predictable international trade environment.
WHO slashes management team after US funding cuts
AFP
The World Health Organization has announced significant layoffs within its management team due to substantial funding cuts from the United States. This reduction in financial support has compelled the organization to scale back its operations and workforce.
Insight
The funding cuts from the U.S., a major contributor to the WHO, have serious implications for global health initiatives. The downsizing may hinder the organization's ability to respond effectively to health emergencies and maintain essential programs. This development raises concerns about the sustainability of international health efforts amid shifting political priorities.
Global Oil Demand Growth to Slow For Rest of 2025, IEA Says
Bloomberg
The International Energy Agency forecasts a slowdown in global oil demand growth for the remainder of 2025. Factors contributing to this deceleration include economic uncertainties and the impact of ongoing trade tensions.
Insight
The anticipated slowdown in oil demand growth reflects broader economic challenges and the influence of geopolitical factors. Energy markets are sensitive to trade policies and economic indicators, and the current outlook suggests a need for adaptive strategies among oil producers and consumers to navigate the evolving landscape.
