1.

After reading this article, what would be the effect in trade between the United States and other
nations, discuss possible pros and cons together with its backlashes. Fully supplement your answer.
 The conclusion of the article states that US is not a signatory to many conventions because it
simply does not want to be bound by the restrictive provisions set by the UN. US want its hands
free and untied in determining and evaluating its own foreign policies. A possible pro of this
movement made by the US when it comes to trading is the free trade agreements. It decreased
or even eliminated tariffs among different nations. For instance, the NAFTA (North American
Free Trade Agreement) that is between the US, Canada and Mexico is a paradigm to this
agreement. It eliminated all tariffs among the three countries, tripling trade to $1.2 trillion and
even outweighed the negative side of such agreements. Another benefit is the creation of the
Bretton Woods Economic System sponsored by the USA. This global system created 3
institutions. The first was the World Bank which is to provide loans to countries to rebuild or
establish their economies and industry. The second was the International Monetary Fund (IMF),
which helped regulate currency and aid countries with financial crises. The third was the
General Agreement on Tariffs and Trade (GATT), which promotes free trade by establishing
rules for its member states. On the opposite side, being the largest economy in the world, once
the US experiences economic recession, trading is also affected and causes negative effects
among other nations. Taking into account, as a recession in the United States takes hold, the
fall in U.S. demand will mean lower exports by European companies, as well as lower sales and
profits for European firms such as BMW, Unilever, and others that produce everything from
cars to consumer products in the United States. It also creates trade war between US and fast-
growing countries like China. For instance, since a recent round of negotiations did not bring
about any resolution to the dispute between both countries, there is now increasing evidence
that the trade war between the two countries is hurting both economies. Furthermore, the
trade dispute is yielding negative spill-over effects for different areas of global concern,
including the climate, environmental protections and waste management, while also
dampening trade in circular goods and services between the two countries.

2. With the emerging age of trade together with the drawback of transactions due to the global
pandemic, what can be the current status of the US amongst other countries? Economically speaking,
would it be more beneficial or would do more harm than good? Justify your answer.
 The COVID-19 pandemic has created public health and trading or economic crisis in the whole
world. The pandemic has caused an unparalleled disturbance on the lives of many people,
shove the hospital system to its extent, and created a global economic to decline. According to
Deloitte Global Economist Network, in the third quarter, the US economy grew at the fastest
pace ever recorded. This is true, but it masks the fact that the economy faces significant
problems. Economic activity remains well below the pre-crisis level, growth likely decelerated
during the third quarter, and the outlook for the fourth quarter is troubling. The growth, which
is beneficial, is likely contributed by the sharp rise in new orders of durable factory goods which
includes computers and related paraphernalia for the massive use in remote learning and
related agenda during this pandemic. Also, the effects of this crisis vary by industry subsector.
With the construction machinery subsector having experienced less-severe effects than it faced
 during the 2007–09 financial crises due to expected government infrastructure stimuli and an
increase in e-commerce, while companies in the machine tools, plastics machinery, and steel
production equipment sectors have been more negatively affected (Kronenwett 2020).

3. Economic analysis has been a topic for many occasions, seemingly even though COVID-19 provides
great peril for human life, trade amongst countries would only temporarily stop. With the existence of
this law, amongst trade between other countries, provide at least 5 situational analyses with regards to
the change in trading amongst other countries including possible trade restrictions.
 In a groundbreaking global health crisis, trading is an essential medium to save human beings
and their livelihoods. International co-operation is a requisite to keep the trade flowing
amongst all the nations amidst the pandemic. Analyses with regards to the change in trading
amongst other countries including possible trade restrictions are as follows:
A. It requires coordination and trust among the different nations to keep the trade flowing
amidst the pandemic
 To give an example, the market will supply essentials and the countries involved
must not impose export restrictions, and that imports do not pose any health risks.
This is a particular challenge at a time of global pandemic, where the international
trading system was already subject to an increased number of new restrictions and
manipulations of trading processes, from tariff increases among major traders, to
significant government reinforcement in key sectors. Undertakings to manage and
prevent strains through ongoing negotiations are now complicated by mobility
restrictions brought by the pandemic. It is more important than ever to avoid
escalation of the current trade tensions to avoid further misunderstanding.
B. Transparency improvement to foster confidence in trade and global markets
 Having a well-built, shared and transparent information base is a critical action in
supporting sound national policy responses and the international cooperation to
keep trade flow smoothly. It will be critical that countries honor their commitments
to notify trade-related measures taken in response to COVID-19. Working with other
international organizations and governments to ensure accurate, current
information on market developments and country policies in critical commodities for
the global food system must be established.

C. Keeping global supply chains going especially for essential goods and services

 An important priority is keeping the key supply chains for essential goods for the
crisis – including medical supplies, food products and ICT goods and services – open
and functioning is a major priority to partake with. Cancellation of passenger flights
due to travel bans imposed by the different countries has limited the availability of
air cargo while urgent shipping of essential goods has increased in demand, resulting
in an increase in the price of air cargo for goods. Delivery times have also increased
due to the urgent needs of commodities. This matters for some time-sensitive
medical supplies and medical equipments that aids in the disease, but also for some
high value food trade.
D. Restrictions on mobility of people and worldwide lockdowns are affecting different trade
processes.

 From physical inspections of goods for SPS (Sanitary and Phytosanitary)

clearance, to testing and certification for TBT (Technical Barriers to Trade)
agreement, to changing how anti-dumping investigations are conducted are all
affected. These increases the time and costs of international trade on products
that matter. They will require coordinated action amongst government agencies
and with the private sector to find solutions to the logistical constraints affecting
the ability to get essential products where they are needed most so that
essential needs will be delivered immediately.

E. Removing barriers in trading such as tariffs on medical goods or supplies that are essential for
combatting COVID-19.

 It means certification procedures must be accomplished in the shortest possible

time to allow new products, especially those related to the essential needs of
people affected by the pandemic, to be traded as soon as possible and ensuring that
technical requirements are science-based and do not necessarily restrict the trading
process. Enhanced trade facilitation to keep goods moving as quickly as possible
including identifying key actions needed to ensure smooth customs procedures with
limited human intervention must be settled for the intention of easy trading
transactions.