A best case trade scenario…
OECD (2018), OECD Economic Outlook, Volume 2018 Issue 1: Preliminary version, OECD Publishing, Paris, https://doi.org/10.1787/eco_outlook-v2018-1-en.
Graph for: A best case trade scenario…
Given current trade tensions, this question might seem fanciful, but what would happen if tariffs were reduced, rather than raised?
According to the OECD Economic Outlook released 30 May, if we reduced tariffs to the lowest level applied in G20 countries, costs would go down by 2% and global trade would rise by more than 3%. And China would not only experience the largest rise in trade, but its imports would outstrip exports. That would be good news for exporters elsewhere, and jobs too.
©OECD Observer June 2018
OECD (2018), OECD Economic Outlook, Volume 2018 Issue 1: Preliminary version, OECD Publishing, Paris, https://doi.org/https://doi.org/10.1787/eco_outlook-v2018-1-en