4 global bodies warn energy risks still cloud trade outlook

The heads of four major global institutions have said energy markets and the transit of goods continue to face strains, keeping trade and cost risks on the watchlist for textile exporters, apparel manufacturers, importers and retail sourcing teams.The heads met on July 7 as part of a high-level coordination group set up in April to align responses to the energy, trade and economic impact of the war in the Middle East. They said the global economy has remained broadly resilient, but the impact has been uneven across countries and regions, with effects on energy supplies, food security, commodities and economic activity.

IEA, IMF, World Bank Group and WTO heads met recently under an April coordination group on Middle East war impacts.
They said energy markets and goods transit still face strains despite lower fuel and fertiliser prices since June.
Exporters, importers and sourcing teams should track navigation, port infrastructure and trade facilitation actions as agencies keep monitoring risks.

The International Energy Agency, International Monetary Fund, World Bank Group and World Trade Organization said in a joint statement that fuel and fertiliser prices had fallen since their previous meeting in June, but uncertainty remained high and the consequences of the conflict could continue. They also called for further progress towards resolving the conflict and reopening the Strait of Hormuz.

For trade-dependent supply chains, the statement highlights continued attention on freedom of navigation, economic recovery, jobs and livelihoods, energy and food security, port infrastructure and trade facilitation. These areas are central to the movement of goods and the operating environment for cross-border sourcing and manufacturing.

The four institutions said they would continue working with members to monitor energy, trade and economic developments, strengthen readiness to act if needed, and adapt support as conditions evolve, including efforts to build greater energy, food, trade and economic resilience.

Fibre2Fashion News Desk