Statement  (New)

In these turbulent times, the TradeExperettes stand in support of the rules-based global trading system. We note with concern that tariffs are increasingly being utilized to address a range of issues, including non-traditional trade issues such as foreign policy and security. While the impact of tariffs may appear immediate and forceful, it's crucial to recognize that the costs are borne by both the targeted nation and the citizens of the imposing country.

These costs are twofold: tariffs directly increase costs, and the threat or imposition of unilateral tariffs for unrelated matters creates significant uncertainty and erodes trust in markets. Ultimately, it is important to bear in mind that tariffs are blunt instruments, with the burden falling on consumers.

Businesses and consumers worldwide rely on the predictability and stability of the global, rules-based trading system. Trade agreements provide the necessary certainty for businesses to plan and invest confidently, while ensuring consumers have a consistent and affordable supply of goods. While concerns about unfair trade practices should and must be addressed, it's important to remember that the vast majority of global commerce operates smoothly and according to established trade rules. This stability has been instrumental in enabling both large and small enterprises to participate in and benefit from global trade.

Recognizing the disruptive nature of tariffs and the value of predictable markets, governments have wisely established separate mechanisms for settling trade disputes. These mechanisms aim to prevent the escalation of tariffs and their use as tools to resolve issues outside the trade sphere. Resorting to tariff threats undermines trust in government relationships and the trading system as a whole. Furthermore, using tariff threats as leverage creates uncertainty that ripples through supply chains. The constant threat forces companies into costly contingency planning, including diversifying supply chains, delaying investments and hiring, and stockpiling goods. These costs are rapidly accumulating and spreading across regions.

We firmly believe that when allowed to operate without disruption, trade and the rules-based trading system are a force for good. It is our collective responsibility to maintain and strengthen this system. We invite collaboration from those who share our commitment to this cause.