India has inked a freetrade pact with the EFTA Bloc that includes a commitment to invest USD 100 bn in the country, concluding an agreement that has been 16 years in the making, Bloomberg reports. Under the pact, the European bloc — which comprises non-EU members Norway, Iceland, Switzerland, and Liechtenstein — will receive easier access to India’s processed food, beverage, and electrical machinery markets. Indian professionals also will see smoother movement and access to EFTA countries. The pact will create 1 mn jobs in India over the next 15 years, the newswire says, citing Indian Trade Minister Piyush Goyal.

The global merchandise trade is struggling to rebound from its slump in 2023, the World Trade Organization (WTO) said in its latest WTO Goods Trade Barometer report issued on Friday. The WTO’s goods barometer came in at 100.6, dipping slightly from the November 2023 reading of 100.7. The baseline figure of 100 indicates growth over the next quarter in line with medium-term trends, Bloomberg explains. The merchandise trade should continue to recover in early 2024, but gains could easily be derailed by regional conflicts and geopolitical tensions which pose a downward risk to the near-term outlook, according to the report. The barometer's component indices were mostly neutral, with indicators of export orders and air freight rising slightly above trend at 101.7 and 102.3 respectively, the report notes. Container shipping came in at 98.6 below trend as well as raw materials trade at 99.1. Automobile production and sales indices remained above the trend at 106.3.

China’s trade has surged on the back of electronics and increased exports to Russia and emerging markets,The Financial Times reported on Thursday. Exports rose some 7.1% y-o-y in January and February 2024 and imports were up 3.5%. China’s biggest trade partner was the Association of Southeast Asian Nations bloc, accounting for some 4.8% of trade, followed by the EU at 4.1%, FT writes, adding that the US’ share was 0.7%. China’s trade with Russia increased some 9.3% to USD 37 bn, with exports to Russia from China increasing by some 12.5%. China’s trade with India and Brazil also boomed in the same period, increasing by some 15.8% and 33.3% respectively. This rise is attributable to friendshoring, as producers moved away from China to evade protectionist US and EU measures, FT writes, citing an analyst.

Crude tanker newbuild contracting jumped 490% y-o-y to 7.4 mn dwt in the first two months of 2024, shipping organization BIMCO reported last week. Nineteen VLCCs were ordered during this period, surpassing the number of orders for this type of vessel in all of 2023. The crude tanker orderbook to fleet ratio grew to 6.2% by February. More oil is forecasted to come from the Americas and oil demand is expected to shift towards Asia in the next few years, resulting in longer sailing distances and higher demand for VLCC models. All the VLCC ships contracted in 2024 so far, and 70% of those ordered in 2023, are set for delivery between 2026 and the end of 2027.

Tags: