Tag Archives: trade

What US withdrawal from UN bodies could mean?

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When UN Spokesperson Stéphane Dujarric briefed correspondents in New York on Thursday following the release of the White House Memorandum, he insisted that the Organization will continue to carry out its mandates from Member States “with determination.”

Wednesday’s memorandum states that the US administration is “ceasing participation in or funding to those entities to the extent permitted by law.”

Several of the bodies listed in the memo are funded principally or partially by the regular UN budget, implying that voluntary funding will be impacted, although central funding will continue.

However, the White House notes that its funding review of international organisations “remains ongoing,” and it is currently unclear what the impact of the announcement will be.

Here’s a breakdown of the 31 UN entities mentioned in the memorandum, and how they are making a positive difference to people, communities and nations, worldwide.

Development

  • UN Human Settlement Programme (UN Habitat): Promotes sustainable towns and cities and provides technical and policy advice for the improvement of living conditions and the reduction of urban poverty

Education and training

  • UN Institute for Training and Research (UNITAR): Provides training and capacity-building for individuals, organisations, and countries (especially developing nations) on areas like diplomacy, sustainable development, climate change and crisis management
  • UN System Staff College: Equips UN personnel with learning, training and advisory services to ensure a capable, adaptable and collaborative UN workforce
  • UN University: The UN’s global think tank and postgraduate teaching organisation conducts research and provides policy advice on pressing global issues
  • Education Cannot Wait: The UN global fund dedicated to education in emergencies and protracted crises, to ensure that children and youth affected by conflict, displacement, and disasters have access to safe, quality education

Gender

Health

  • UN Population Fund (UNFPA): Promotes sexual and reproductive health and rights for all, promotes gender equality and collates population data for development, helping to reduce maternal mortality and expand access to family planning

International Law

  • International Law Commission: Mandates the development and codification of international law by drafting legal instruments and clarifying principles; fostering the rule of law, and supporting peaceful relations among states
  • International Residual Mechanism for Criminal Tribunals: Carries out essential functions of the former International Criminal Tribunals for Rwanda and the former Yugoslavia, completing ongoing cases, protecting witnesses and preserving archives, ensuring accountability for serious international crimes

Shipping faces ‘stormy seas’ as trade slows and costs rise

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After firm expansion last year, seaborne trade volumes are forecast to rise by just 0.5 per cent in 2025, the slowest pace in years, according to the agency’s Review of Maritime Transport 2025, launched in Geneva.

The slowdown comes as geopolitical tensions, new trade barriers and climate pressures reshape shipping routes, push up costs and expose vulnerabilities in the global economy.

“The transitions ahead – to zero carbon, to digital systems, to new trade routes – must be just transitions,” said UNCTAD Secretary-General Rebeca Grynspan. “They must empower, not exclude. They must build resilience, not deepen vulnerability.”

Routes in flux, costs rising

Shipping carries over 80 per cent of the world’s merchandise for export and import, making it a critical barometer of global commerce.

UNCTAD reported that rerouting caused by crises in the Red Sea in 2024 and continuing tensions near the Strait of Hormuz have forced ships onto longer journeys, adding delays and costs.

At the Geneva launch, Regina Asariotis, Chief of UNCTAD’s Trade Logistics Branch, warned that vulnerable economies are paying the heaviest price:

“The global environment has become more complex. Geopolitical tensions are forcing costly reroutings, tariffs are disrupting trade flows, and freight rates are high and volatile.

Small island developing States, least developed countries, and net food importing nations are the most vulnerable, because higher freight costs quickly translate into more expensive imports and food insecurity.”

Ports under pressure

Global ports are struggling with congestion, longer waiting times and the pressure to modernise. UNCTAD highlighted the urgent need to invest in digital systems such as maritime single windows and port community platforms to cut costs and delays.

But many developing countries continue to lag behind in digitalisation. With cyber threats on the rise, the report warns that cybersecurity has become a critical priority for maritime logistics.

Climate challenge

The shipping industry’s greenhouse gas emissions rose by five per cent in 2024, the report said. Yet only eight per cent of the world fleet’s tonnage is currently equipped to use alternative fuels.

The International Maritime Organization will consider a Net-Zero Framework in October, including a global fuel standard and carbon pricing mechanism. UNCTAD says clear regulatory signals, fleet renewal and new fuel infrastructure are vital to reduce emissions.

Human cost at sea

Beyond trade flows and emissions, the report stressed the human toll. Seafarer abandonment cases reached a record high in 2024, leaving crews stranded without pay or support.

Amendments to the Maritime Labour Convention entering into force in 2027 will strengthen rights to repatriation and shore leave, but UNCTAD stressed that effective enforcement is essential.

Policy priorities

The review calls for governments and industry to work together on:

  • Stable trade policies to reduce uncertainty and restore confidence in supply chains;
  • Investment in sustainable, green and resilient port and shipping infrastructure;
  • Faster digitalisation and stronger cybersecurity;
  • Fleet renewal and cleaner fuels; and
  • Support for vulnerable economies to mitigate higher costs.

“Persistent high transport costs risk hitting developing countries the hardest,” Ms. Grynspan said. “Maritime transport must be resilient, inclusive and sustainable if we are to weather the turbulent waters ahead.”

International Day for Remembrance of Slave Trade: ‘Time to abolish exploitation once and for all’

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“It is time to abolish human exploitation once and for all and to recognise the equal and unconditional dignity of each and every individual,” Ms. Azoulay said.

The Day is intended to inscribe the tragedy of the slave trade in the memory of all peoples.

Details from Ark of Return, the permanent memorial at UN Headquarters to acknowledge the tragedy and consider the legacy of slavery and the transatlantic slave trade.

‘The fight is not over’

Echoing the goals of UNESCO’s intercultural project The Routes of Enslaved Peoples, it should offer an opportunity for collective consideration of the historic causes, the methods and the consequences of this tragedy and for an analysis of the interactions to which it has given rise between Africa, Europe, the Americas and the Caribbean, said the UN agency, which leads the annual commemoration.

UN Deputy Secretary-General Amina Mohammed said that while the Day honours the victims of the transatlantic slave trade, “the fight is not over.”

“Modern slavery persists,” she stated. “Let’s confront injustice, past and present and uphold the dignity and rights of every person.”

For its part, the UN works towards these goals, including through its Outreach Programme on the Transatlantic Slave Trade and Slavery, established in 2007.

Uprising led to abolition

On the night of 22 to 23 August 1791, in then Saint Domingue, now Haiti, saw the beginning of the uprising that would play a crucial role in the abolition of the transatlantic slave trade.

Against this background, the International Day is commemorated around the world. It was first celebrated in a number of countries, including in 1998 in Haiti and in 1999 on Gorée Island in Senegal, where millions of enslaved people had been forced onto ships to cross the ocean.

“Today, let us remember the victims and freedom fighters of the past so that they may inspire future generations to build just societies,” UNESCO’s Ms. Azoulay said.

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Landlocked nations ‘invisible to much of the world’: UN trade and development chief

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At a major UN conference underway this week in Awaza, Turkmenistan, calls are growing to tackle the high trade costs, investment gaps and growing digital divide that continue to hold these countries back.

Despite progress in some areas, landlocked developing nations – from Bolivia to Bhutan and Burkina Faso – account for just 1.2 per cent of global exports, even though they represent over seven per cent of the world’s countries. Their populations face some of the highest levels of poverty, food insecurity and economic vulnerability anywhere.

“These countries are invisible to much of the world,” not able to draw the attention needed to their unique challenges, said Rebeca Grynspan Secretary-General of the UN trade and development body, UNCTAD, speaking to UN News on the margins of the third UN Conference on Landlocked Developing Countries (LLDC3).

Without international attention and coordinated action, they will remain stuck in structural limbo, she emphasised.

High costs, low returns

One of the most persistent challenges they face is geography itself.

Without direct access to seaports, they must rely on neighbouring transit countries to move goods – often through outdated or inefficient infrastructure.

This translates into trade costs that are, on average, 1.4 times higher than those of coastal countries, according to UNCTAD. In some cases, export procedures can stretch into weeks or months due to border delays, fragmented regulations and limited digital systems.

Ms. Grynspan highlighted that in customs procedures, digital tools can cut waiting times at borders from three days to three hours. To that end, regional agreements and digital initiatives have emerged as lifelines.

UNCTAD head Rebeca Grynspan speaking to UN News.

One standout example is the Framework Agreement on Facilitation of Cross-Border Paperless Trade, championed by the UN Economic and Social Commission for Asia and the Pacific (ESCAP). Now in force among several Asia-Pacific countries, it helps reduce paperwork, automate customs and harmonise standards, making processes faster, cheaper and more transparent.

Paperless trade also has the potential to reduce corruption and ease language-related challenges.

ESCAP estimates that implementing cross-border paperless trade measures could reduce trade costs by up to 30 per cent for countries in the region without direct sea access and increase export potential for the whole of Asia and the Pacific by nearly $260 billion.

Infrastructure and integration

Even when goods reach border crossings, weak domestic transport networks further slow trade down. Roads and railways are often underdeveloped, underfunded or vulnerable to climate shocks.

“Regional infrastructure – like the African North Corridor – is crucial,” Ms. Grynspan said, citing examples where wait times at borders have dropped by more than 150 per cent due to corridor investment and coordination.

But infrastructure alone is not enough – it must be paired with digital systems and strong regional partnerships.

“For landlocked countries, regional integration is very important because when you integrate regionally, you are in a better position because goods pass through you…[making you] part of global value chains with value added.”

In landlocked countries like Bhutan (pictured), roads are a vital lifeline. But limited and costly transport infrastructure restricts mobility, inflates trade costs, and hinders access to markets, education, and healthcare.

Escaping the commodity trap

Another structural challenge is heavy dependence on commodities. Over 80 per cent of landlocked developing countries rely on raw materials like minerals, oil or agricultural goods, making them highly exposed to global price swings and long-term decline in terms of trade.

“You educate your people, but then they have nowhere to work because commodities do not give you the quality jobs that you need for the future,” said Ms. Grynspan.

The path forward lies in economic diversification, especially toward value-added manufacturing, digital services and knowledge-based sectors – industries that are less constrained by geography.

The investment conundrum

Yet to realise that potential, these countries need investment and they are not getting enough.

Despite more than 135 legal and policy reforms aimed at attracting foreign capital, foreign direct investment has declined by an average of 2 per cent over the past decade.

ESCAP’s analysis confirms this gap: landlocked countries in Asia are receiving far less infrastructure investment per person compared with coastal countries, even though their transport requirements are proportionally higher.

“Governments are trying to make their countries more attractive [but] investment is not coming in,” Ms. Grynspan said.

High risk factors, lack of guarantees, and a reliance on short-term financing are deterring investors.

“Multilateral development banks need to help us,” she added. “We need long-term, affordable financing and lowered cost of capital.” 

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Trade measures critical to ending plastic pollution

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That assessment by UN trade and development body, UNCTAD, comes in an update published on Thursday ahead of the final round of talks to develop a legally binding international instrument against plastic pollution.

“Although plastics are directly linked to the triple planetary crisis – pollution, biodiversity loss, and climate change – there is still no comprehensive international treaty governing their composition, design, production, trade, and disposal,” UNCTAD said.

Polluting our oceans

In 2023, plastic production reached 436 million metric tonnes worldwide, with the traded value surpassing $1.1 trillion.  It also accounted for 5 per cent of total merchandise trade.

However, 75 per cent of all plastics ever produced have become waste, most of which has ended up in the world’s oceans and ecosystems.

This pollution also threatens food systems and human well-being, especially in small island and coastal developing countries with limited capacity to cope.

Support for substitutes

UNCTAD is advocating for tariff and non-tariff measures to support ecologically sustainable plastic substitutes which often are derived from natural sources such as minerals, plants or animals, and can be recycled or turned into compost.

Global trade in these substitutes reached $485 billion in 2023, with an annual growth of 5.6 per cent in developing economies.

Scaling up will require action to address challenges related to tariff and non-tariff measures, limited market access and weak regulatory incentives.

Tariff disparities

UNCTAD explained that a reduction in tariffs on plastic and rubber products over the past 30 years – from 34 per cent to 7.2 per cent – has made them “artificially inexpensive”.  Meanwhile, alternatives such as paper, bamboo, natural fibres and seaweed face average tariffs of 14.4 per cent

“These disparities in how materials are treated discourage investment in alternative products and hinder innovation in developing countries that aim to export safer and more sustainable alternatives to fossil fuel-based plastics,” it said.

Currently, 98 per cent of plastics are derived from fossil fuels, meaning that emissions and environmental damage are expected to rise if left unchecked. In response, many countries are using non-tariff measures such as bans, labelling requirements and product standards.

However, these regulations differ, leading to fragmentation and increased compliance costs. Furthermore, small businesses and low-income exporters struggle in the face of overlapping or inconsistent requirements, thus affecting how they can both participate in and benefit from sustainable trade.

Hope for treaty talks

For UNCTAD, the talks towards the plastic pollution treaty are promising. They began in 2022, with the final round taking place next week at the UN in Geneva.

The treaty would cover the entire life cycle of plastics – production, consumption, and waste – within a fair and comprehensive framework.

The UN agency said a successful treaty should include tariff and non-tariff measures to support sustainable substitutes for plastic, investment in waste management and circular infrastructure, digital tools for traceability and customs compliance, as well as policy coherence across frameworks reached through the World Trade Organization (WTO); the UN climate secretariat, UNFCCC; the Basel Convention on hazardous waste, and related regional measures.

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US tariff delay deepens trade uncertainty, warns top UN economist

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While the initial 90-day pause on so-called “reciprocal” tariffs offered some relief compared to planned increases of up to 50 per cent, the US imposed a 10 per cent baseline tariff instead, added on top of existing duties. This means many countries – especially developing economies – faced higher costs exporting goods to the US.

The tariff suspension, originally set to expire soon, has now been extended until August 1, further prolonging uncertainty, Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC), told reporters at a regular news briefing at the UN Office in Geneva (UNOG).

She warned this move adds to a mounting “dual shock” of rising trade restrictions and deep cuts to development aid, which hit developing countries the hardest.

ITC is a joint United Nations-World Trade Organization (WTO) agency supporting businesses in developing countries.

Real-world consequences

“Economic uncertainty has real-world consequences on countries and sectors,” Ms. Coke-Hamilton said, citing the volatility in gold and precious metals flows as a case in point.

After the US exempted those commodities from the new tariffs, trade volumes surged – with gold imports into Switzerland up 800 per cent year-on-year in May, based on US import data.

Ms. Coke-Hamilton said that since the beginning of the year, ITC has tracked more than 150 new restrictive trade measures globally.

Layered onto existing global trade disruptions since the start of the war in Ukraine, the resulting strain has disproportionately impacted least developed countries (LDCs), which often face the steepest tariffs and the narrowest fiscal space to respond.

A ‘perfect storm’ is brewing

Lesotho, for instance, faces a 50 per cent tariff on apparel exports to the US, threatening its largest industry and tens of thousands of jobs. Viet Nam, though having negotiated a lower tariff, faces a 20 per cent levy – double the current baseline rate – potentially reshaping its $937 million auto and auto-related trade with the US.

Ms. Coke-Hamilton also flagged concerns over cuts in development financing, noting that G7 countries are projected to reduce aid spending by 28 per cent next year – the largest drop in five decades.

“A perfect storm is brewing – just as trade becomes more unpredictable, external support through aid is also shrinking,” she said.

Navigating the challenges

To respond, she urged developing countries to focus on three strategic responses: strengthening regional value chains, investing in value addition to reduce commodity dependence and prioritising small business resilience.

“Stability can come from the ground up,” she said.

“Although uncertainties lie ahead in both the trade and aid landscapes, developing countries can still find ways not only to navigate these challenges, but to take on an active role in bringing about greater stability.”

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Despite the fall of Assad, the illicit drug trade in Syria is far from over

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Despite the current government’s hostility to the trade, the country remains a hub for the production and distribution of the drug.

During the country’s long-running civil war, the Assad regime was hit by sanctions and diplomatic isolation, and the trade in Captagon is believed to have brought in billions of dollars for the dictator and his allies.

The country’s attitude towards the trade changed markedly after the fall of Assad in December 2024, and the rise to power of a transitional government led by members of the Islamist group HTS and comprising members of many of Syria’s ethnic groups. The current administration has pledged to disrupt the supply chain and has demonstrated this by publicly destroying large quantities of seized Captagon.

Thousands of people gathered in Damascus on Friday to celebrate the fall of the Assad regime.

However, the most recent edition of the World Drugs Report, released by the UN Office on Drugs and Crime (UNODC) on 26 June, warns that Syria remains a major hub for the drug, despite the crackdown.

Ahead of the launch, Angela Me, the head of social affairs at UNODC, talked to UN News about the continued use of Captagon in the region,

Angela Me: Captagon is a stimulant, similar to methamphetamine, which is taken as a pill, and for many years it has been the main drug of concern in the Gulf state and parts of North Africa.

It was called the “Jihadi pill” after it was found that the perpetrators of some terrorist attacks had used it. On the battlefield it helps to maintain energy, which is one reason it is so widespread. But users quickly become dependent, and it causes physical and mental health problems.

UN News: The transitional government of Syria has indicated that they do not tolerate this trade, but your report shows that Syria is still a big hub for Captagon. Who is producing and selling?

Angela Me: There is a lot of uncertainty around that. We see a lot of large shipments going from Syria through, for example, Jordan. There are probably still stocks of the substance being shipped out, but we’re looking at where the production may be shifting to. We’re also seeing that the trafficking is expanding regionally, and we’ve discovered labs in Libya.

UN News: Given the large amounts of money generated by drugs, are there still groups in Syria that would like to carry on the trade in the parts of the country they control?

Angela Me: Definitely, and not only in Syria, but also in the wider region. These groups have been managing Captagon for a long time, and production is not going to stop in a matter of days or weeks.

We are helping countries to tackle the problem from an organised crime perspective, to understand the criminal groups involved, so that they can design responses and solutions: our research shows that there is not one single response to dismantle the groups.

We also help law enforcement to connect with their peers in the region, because this is not a national problem. It’s clearly a transnational problem which goes beyond the Middle East; we have been seeing Captagon traffic through Europe, for example.

Another way we can support is by addressing the health-related issues, sharing evidence-based treatment that can really help people to recover from their dependence on the drug.

World News in Brief: Rights abuses in Haiti, Sudan war sees exodus to Chad, food trade optimism

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Between 1 January and 30 May, at least 2,680 people – including 54 children – were killed, 957 injured, 316 kidnapped for ransom, and many more subjected to sexual violence and child gang recruitment.

“Alarming as they are, numbers cannot express the horrors Haitians are being forced to endure daily,” said Mr. Türk.

Conflicts on all sides

In recent months, gangs have attacked Mirebalais in the centre of the country, looting police stations, destroying property and freeing over 500 inmates from the local prison.

Meanwhile, so-called self-defence groups have targeted individuals they suspect of gang affiliation. On 20 May, at least 25 people were killed and 10 injured by a group accusing them of supporting gangs.

Law enforcement has ramped up operations against them. Since January, police have killed at least 1,448 people, including 65 during extrajudicial executions.

Mr. Türk called on the international community to take decisive action to end the violence, including renewed support for the Security Council-backed Multinational Security Support (MSS) mission and full enforcement of the council’s arms embargo.

He also reiterated his call for States to not forcibly return anyone to Haiti.  

“The coming months will be crucial and will test the international community’s ability to take stronger, more coordinated action – action that will help determine the future stability of Haiti and the wider region,” Mr. Türk added.

Outlook for food trade ‘relatively optimistic’, FAO says

The Food and Agriculture Organization (FAO) released their annual Food Outlook report Thursday which provides a “relatively optimistic” look at international food markets.  

According to the report, production is expected to increase across almost all categories, with grain production expected to reach record levels. And while prices do remain higher this year than last, between April and May there was an overall decrease of almost one per cent. 

The report noted, however, that global trends — including rising geopolitical tensions, climate shocks and trade uncertainties — may still negatively impact production.  

“While agricultural production trends appear solid, drivers that could negatively impact global food security are increasing,” said FAO Chief Economist Máximo Torero.

Fowl, fish fraud and fertilizer flows

The report noted that outbreaks of avian influenza have become more persistent and constitute “one of the most significant biological threats to the global poultry sector.” Nevertheless, poultry exports have largely remained largely resilient so far.  

The issue of fish fraud – the misrepresentation of the location or manner of the catch – was also discussed, with FAO warning that risks are growing.  

Additionally, the report examined fertilizer flows, noting Russia’s growing exports and the decrease in fertilizer prices since the COVID pandemic.  

Overall, the report noted, the cost of imports worldwide has increased by 3.6 percent or nearly $2.1 trillion.  

Eastern Chad ‘reaching a breaking point’ as Sudan war refugees continue to arrive  

Aid teams in eastern Chad warn on Friday that host communities are reaching breaking point because of climate shocks and the pressure of hosting war refugees from neighbouring Sudan.

In an alert, the UN’s top aid official in Chad, François Batalingaya, warned that a humanitarian catastrophe is unfolding almost unnoticed by the world’s media.

“Right now, nearly 300,000 people are stranded at the border, waiting to be relocated inland,” he noted.  

“Tens of thousands, mostly women and children, are sleeping in the open without shelter, clean water and health care. These are survivors of war. They arrive traumatized, hungry, and with nothing. They recount stories of mass killings, sexual violence and entire communities destroyed.” 

Major exodus

Since the outbreak of war in Sudan in April 2023, more than 850,000 Sudanese refugees have crossed into Chad. They’ve joined the 400,000 existing Sudanese refugees who have arrived over the last 15 years.

The UN aid official explained that even before the latest Sudanese arrivals, nearly one million people in eastern Chad were in urgent need of help.  

Today, “they are sharing what little they have – food, water, and space – with those fleeing the war,” Mr. Batalingaya said.

In an appeal for international assistance, he warned that clinics are overwhelmed, malnutrition is rising and basic services are buckling.  

World News in Brief: Women’s health in Sudan, childhood wasting, Belarus trade unions, Guatemala child rights violation

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As hostilities rage in Sudan, access constraints and devastating funding cuts are isolating rape survivors and pregnant women from essential health services, the UN sexual and reproductive health agency UNFPA said on Thursday. 

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Sudden escalation of trade tensions sends shockwaves through global economy

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Tariff-driven price pressures are adding to inflation risks, leaving trade-dependent economies particularly vulnerable.

Higher tariffs and shifting trade policies are threatening to disrupt global supply chains, raise production costs, and delay key investment decisions – all of this weakening the prospects for global growth.

General slowdown

The economic slowdown is widespread, affecting both developed and developing economies around the world, according to the report.

In the United States, growth is projected to slow “significantly”, said DESA, as higher tariffs and policy uncertainty are expected to weigh on private investment and consumer spending.

Several major developing economies, including Brazil and Mexico, are also experiencing downward revisions in their growth forecasts.

China’s economy is expected to grow by 4.6 per cent this year, down from 5.0 per cent in 2024. This slowdown reflects a weakening in consumer confidence, disruptions in export-driven manufacturing, and ongoing challenges in the Chinese property sector.

Inflation risks

By early 2025, inflation had exceeded pre-pandemic averages in two-thirds of countries worldwide, with more than 20 developing economies experiencing double-digit inflation rates.

This comes despite global headline inflation easing between 2023 and 2024.

Food inflation remained especially high in Africa, and in South and Western Asia, averaging above six per cent. This continues to hit low-income households hardest.

Rising trade barriers and climate-related shocks are further driving up inflation, highlighting the urgent need for coordinated policies to stabilise prices and protect the most vulnerable populations.

Developing economies

“The tariff shock risks hitting vulnerable developing countries hard,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.

As central banks try to balance the need to control inflation with efforts to support weakening economies, many governments – particularly in developing countries – have limited fiscal space. This makes it more difficult for them to respond effectively to the economic slowdown.

For many developing countries, this challenging economic outlook threatens efforts to create jobs, reduce poverty, and tackle inequality, the report underlines.

Francoise picks out vegetables to resell to the Congolese traders at the Elakat market in the DRC.

 

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Stuck in the middle? Indebted nations plot path to growth amid global trade upheaval

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The High-Level Conference of Middle-Income Countries (MICs), held on 28 and 29 April, was attended by senior representatives from 24 MICs, many of which are highly indebted, leaving them little room for spending on developing their economies.

Since 2000, only 27 countries transitioned from middle income to high-income status, and many have experienced reversals back to middle-income level: 11 nations switched back and forth at least once before reaching their current high-income status.

“The transition of middle-income countries to high-income status while meeting sustainable development ambitions calls for the bolstering of financing for development,” said Armida Salsiah Alisjahbana, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (ESCAP) at the opening of the event. “This calls for domestic policy reforms aimed at expanding fiscal space, maintaining debt sustainability and channeling resources towards productive investments.”

The Makati Declaration on Middle-Income Countries calls for the UN to support MICs in accessing development financing, including via innovative financing mechanisms, and to provide support in a number of areas, ranging from programs and initiatives to mitigate and adapt to the climate crisis to digital transformation and making countries more resilient to global shocks (see full list of measures below).

Delegates at the High-Level Conference of Middle-Income Countries (April 2025)

“We recognize that middle-income countries experience frequent growth slowdowns, and if left unaddressed, this loss of economic dynamism can cause countries to get stuck in what is referred to as the “middle-income trap,” the Declaration states. “We stress that middle-income countries continue to face specific challenges related to, inter alia, high levels of inequalities, low growth, persistent poverty, unemployment, loss of biodiversity, the adverse effects of disaster risks and climate change, reliance on primary commodity exports, high levels of external debt and the volatility of exchange rates and capital flows, and digital divide.”

MICs will strengthen cooperation among themselves and offer increasing resources under technical cooperation between countries in the global South, which could become particularly important given the recent reduction in development support from traditional donors of the global North.

“We are re-moulding traditional development partnerships as more MICs, including the Philippines, increase resources for South-South and technical cooperation,” said Enrique Manalo, Secretary for Foreign Affairs of the Philippines at the event. “This is a trend that, if scaled up, could potentially result in game-changing dividends for the global development system.”

The Like-Minded Group of MICs are “as champions of multilateralism,” he added. “Carving a steady path for all middle-income countries behooves us to support strongly an international rules-based order underpinned by equity and justice.”

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India Signed Air Services Agreements or Drafts with 114 Countries So Far

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India has so far signed and initiated Air Services Agreement with 114 countries and latest one was with Rwanda, signed on 20th February 2017 at Kigali, informed Minister of State for Civil Aviation Jayant Sinha in written reply to a question in Lok Sabha on Wednesday.

The Air Services Agreements between India and other countries have the potential to spur greater trade, investment, tourism and cultural exchange and help rejunevate the civil aviation sector, he said.

The agreements enable an environment for enhanced and seamless connectivity, while providing commercial opportunities to the carriers of both the sides ensuring greater safety and security.

The same was discussed when the Deputy Foreign Minister of Afghanistan Mr. Hikmat Karzai visited India on Wednesday on the sidelines of the International Counter Terrorism Conference. Both sides discussed among others Air corridor for trade between Afghanistan and India.

Usually the Air Services agreements provide for both countries to designate one or more airlines with the right to establish offices in the territory of the other country for the promotion end sale of air services.

The designated airlines will have fair and equal opportunity to operate the agreed services on specified routes and they can enter into cooperative marketing arrangements with the designated carriers of same party, other party and third country.

Japan Seeks India to Resolve Transfer Pricing Issue First

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Commerce and Industry Minister Nirmala Sitharaman held talks with the visiting Japanese delegation led by Hiroshige Seko, Minister, Ministry of Economy Trade and Industry (METI) where the Japanese side raised the Transfer Pricing issue that has remained contentious between the two sides for long.

Japanese side said India should address the complaints raised by the Japanese chamber from time time to enhance the investments by Japanese companies in India. He also requested that the issue of Transfer Pricing assessment raised by Japan Chambers of Commerce and Industry in India (JCCII) needs to be resolved.

Sitharaman said the pace of implementation of India-Japan Comprehensive Economic Partnership Agreement (CEPA) requires greater momentum to tap the potential of India-Japan bilateral trade and Seko in his reply said 25 Japanese companies are participating in Vibrant Gujarat Summit.

The Japanese business delegates briefed about their business presence in India and expressed their willingness to diversify their business in sectors such as Agriculture, Power, Electronics, Railways, Logistics Sectors, manufacturing of ATMs, which has become urgent and imminent in view of demonetisation and the consequent cash crunch in the country.

The Japanese side also expressed interest in enhancing co-operation in the area of Intellectual Property Rights (IPR) between India and Japan and offered to train Indian IPR examiners in Japan to underline the need for a high level meeting between India and Japan on IPR cooperation. Seko offered an invitation to 100 IPR Examiners for training in Japan.

Sitharaman requested the Japanese side to take steps to increase Indian Exports to Japan in sesame seeds, Surimi fish and Indian generic drugs. She said that the Japanese Industrial Townships (JITs) in India would be transformational and will bring in significant Japanese investments and further strengthen India-Japan Economic Cooperation.

On the Logistics front she mentioned that India plans to build Logistics University wherein the cooperation from Japan would be needed.