Indian exporters are expressing concerns over the political crisis in Bangladesh, citing disruptions in bilateral trade due to the country’s economic challenges. While hoping for a swift normalization of the situation, exporters acknowledge potential long-term implications for trade between the two nations, particularly with regards to payments, border closures, and supply chain disruptions.
India, the world’s largest rice exporter, is likely to relax export restrictions on basmati rice and parboiled rice, including lowering the minimum export price (MEP) for basmati and replacing the 20% export tax on parboiled rice with a fixed duty. This move comes as rice inventories in India have reached a record high, exceeding local demand and posing concerns about spoilage. The government is also considering resuming white rice exports after assessing the progress of rice planting.
The Indian government is establishing a National Test House (NTH) as the apex certification body for all Indian products. This move comes in response to a series of export order rejections due to sub-standard quality. NTH will ensure products meet global standards and will be responsible for certifying food, spices, organic products, and more.
Costa Rica participated in the Seoul Food & Hotel trade show from June 11 to 14, showcasing its high-quality food products to buyers and consumers from South Korea and other Asian countries. The event aimed to promote Costa Rica as a reliable supplier, increase trade with South Korea, and diversify exports into non-traditional markets.
Despite recent improvements in economic growth, deflation persists in China, raising concerns about its potential impact on export destinations. However, analysts suggest that this impact has been minimal, with Chinese goods representing a small portion of final consumption in export markets and destination countries experiencing service price inflation that overshadows any disinflationary effects.
New Zealand’s trade surplus returned in March, driven by an increase in exports and a decrease in imports. The NZD/USD exchange rate remained relatively stable after the release of the data.
US exports to China fell by 4.3% last year to $144.9 billion, due in part to policy changes and China’s economic slowdown. The US-China Business Council emphasized the importance of considering the geopolitical implications of trade policy decisions and the potential consequences for US sectors such as agriculture. Despite the decline, oilseeds and grains remained the top exports to China, while semiconductor and travel services exports dropped significantly.
South Korea’s economy grew by an estimated 0.6% in the first quarter of 2023, maintaining the pace of expansion from the previous quarter. This growth was primarily driven by strong exports, which offset a slowdown in household consumption. The trade-dependent economy benefited from a resurgence in semiconductor exports, a positive indicator for global trade. On a year-on-year basis, GDP is projected to have expanded by 2.4%, the fastest growth rate since Q3 2022. However, potential economic headwinds include uneven growth in China and the impact of interest rate hikes on consumer spending.
