The COVID-19 pandemic, a global pandemic of coronavirus disease 2019 (COVID-19), which evolved in
late 2019 and spread globally in early 2020, affected global trade. During the COVID-19 pandemic era,
almost all countries affected by this pandemic implemented border closures, visa restrictions,
quarantine requirements, lockdowns, and flight suspensions to mitigate the spread of this pandemic.
The implementation of these restrictions has played havoc with the cross-border movement of people.
There was a decline in the exchange of goods and services between countries, which affected
international trade.
To begin with, one of the impacts of the COVID-19 pandemic on global trade was a shift in trade
patterns. During the COVID-19 pandemic, Supply chains have been disrupted and demand patterns have
shifted, with and many countries starting to support domestic production. This declined International or
global trade and increased domestic trade. According to the World Trade Organization (WTO), intraregional trade flows in Asia, for example, increased in 2020, while trade between Asia and other regions
decreased.
Another impact of the COVID-19 pandemic on global trade was a reduction in trade volumes. The WTO
forecasted a 9.2% decline in the volume of world merchandise trade for 2020, followed by a 7.2% rise in
2021. These estimates are subject to an unusually high degree of uncertainty since they depend on the
evolution of the pandemic and government responses to it.
Not only the negative impacts of the COVID-19 pandemic on global trade but also, the COVID-19
pandemic increased trends towards e-commerce. As lockdowns, border closures, Visa restrictions, and
flight suspensions disrupted imports and exports, consumers increased the demand for e-commerce
raising e-commerce share of global retail from 14% in 2019 to about 17% in 2020. This makes global
trade easier and faster.
To conclude, the COVID-19 pandemic impacted a shift in trade patterns, a reduction in trade volumes,
and increasing trends toward e-commerce. As more pandemics like COVID-19 are discovered in the
world, some of the above-stated trends will determine the future of global trade.
Reference
1. news, W. (2020, October 06). Trade shows signs of rebound from COVID-19, recovery still uncertain.
Retrieved from https://www.wto.org/english/news_e/pres20_e/pr862_e.htm
2. Prosperity for all, U. (2021, March 15). How COVID-19 triggered the digital and e-commerce turning
point. Retrieved from https://unctad.org/news/how-covid-19-triggered-digital-and-e-commerceturning-point