The United Nations Conference on Trade and Development (UNCTAD) has expressed profound concerns over the escalating disruptions in global trade, particularly stemming geopolitical tensions affecting shipping in the Black Sea, recent attacks on shipping in the Red Sea affecting the Suez Canal and the impact of climate change on the Panama Canal. UNCTAD underscored the critical role maritime transport plays as the backbone of international trade, responsible for over 80% of the global movement of goods, said the UN trade and development body on Friday in Geneva. Developing countries are particularly vulnerable to these disruptions and UNCTAD remains vigilant in monitoring the evolving situation. The organization emphasizes the urgent need for swift adaptations from the shipping industry and robust international cooperation to navigate the rapid reshaping of global trade dynamics. Hungary, Kyrgyzstan greet PM Sheikh Hasina on her re-election The current challenges underscore trade's vulnerability to geopolitical tensions and climate-related challenges, demanding collective efforts for sustainable solutions especially in support of countries more vulnerable to these shocks. Trade disruption in the Black Sea, the Panama Canal and the Suez Canal routes. The recent attacks on Red Sea shipping, coupled with existing geopolitical and climate-related challenges, have given rise to a complex crisis affecting key global trade routes. UNCTAD estimates that the weekly transits going through the Suez Canal decreased by 42% over the last two months. The ongoing conflict in Ukraine has triggered substantial shifts in oil and grain trades, reshaping established trade patterns. Simultaneously, the Panama Canal, a pivotal conduit for global trade, is grappling with diminished water levels, resulting in a staggering 36% reduction in total transits over the past month compared to a year ago. The long-term implications of climate change on the canal's capacity are raising concerns about enduring impacts on global supply chains. The crisis in the Red Sea, marked by Houthi-led attacks disrupting shipping routes, has added another layer of complexity. France wants to have more strategic collaboration, partnership with Bangladesh Major players in the shipping industry have temporarily suspended Suez transits in response. Notably, container ship transits per week have plummeted by 67% compared to a year ago, with container carrying capacity, tanker transits, and gas carriers experiencing significant declines. The surge in the average container spot freight rates during the last week of December, by plus 500 dollars, in one week, was the highest ever weekly increase. Average container shipping spot rates from Shanghai this week are up by 122% compared to early December. i.e. have more than doubled. The rates from Shanghai to Europe went up by 256%, i.e. more than tripled. Rates to the United States West coast also increased above average, although they do not go through Suez. They increased by 162%. Here we see the global impact of the crisis, as ships are seeking alternative routes, avoiding the Suez and the Panama Canal. The cumulative effect of these disruptions translates into extended cargo travel distances, escalating trade costs, and a surge in greenhouse gas emissions from shipping having to travel greater distances and at greater speed. Avoiding the Suez and Panama Canal necessitates more days of shipping, resulting in increased expenses. The price per day of shipping and insurance premiums have surged, compounding the overall cost of transit. New Bangladesh offering amazing investments opportunities: FM Hasan tells German Ambassador Additionally, ships are compelled to travel faster to compensate for detours, burning more fuel per mile and emitting more CO2, further exacerbating environmental concerns. Global Implications: increases in food and energy prices. UNCTAD underscored the far-reaching economic implications of these disruptions. Prolonged interruptions, particularly in container shipping, pose a direct threat to global supply chains, potentially leading to delayed deliveries and heightened costs. While current container rates are approximately half of the peak during the Covid crisis, passing on higher freight rates to consumers takes time, with the full impact expected to manifest within a year. Energy prices are witnessing a surge as gas transits are discontinued, directly impacting energy supplies, especially in Europe. The crisis is also reverberating in global food prices, with longer distances and higher freight rates potentially cascading into increased costs. Disruptions in grain shipments from Europe, Russia, and Ukraine pose risks to global food security, affecting consumers and lowering prices paid to producers.

The value of global trade rose to a record $7.7 trillion in Q1 2022, an increase of about $1 trillion over the same period of the last year. The growth, which represents a rise of about $250 million relative to Q4 2021, is fuelled by rising commodity prices, as trade volumes have increased to a much lower extent. Though expected to remain positive, trade growth has continued to slow during Q2 2022, said the United Nations Conference on Trade and Development (UNCTAD)’s global trade update published on July 7.    “The war in Ukraine is starting to influence international trade, largely through increases in prices,” the report says. It adds that rising interest rates and the winding down of economic stimulus packages will likely have a negative impact on trade volumes for the rest of 2022. Volatility in commodity prices and geopolitical factors will also continue to make trade developments uncertain. Trade growth is strong for both developed and developing countries. Read: Price spiral overshadows Eid festival of struggling middle-and-low income people According to the report, trade growth rates in Q1 2022 remained strong across all geographic regions, although somewhat lower in East Asia and Pacific regions. Export growth has been generally stronger in commodity-exporting regions, as commodity prices have increased. Trade-in merchandise goods reached about $6.1 trillion, an increase of about 25 per cent relative to Q1 2021, and a jump of about 3.6 per cent relative to Q4 2021. The value of merchandise exports from developing countries was about 25 per cent higher in Q1 2022 than in Q1 2021. In comparison, this figure is about 14 per cent for developed countries. Merchandise trade between developing countries also strongly grew during Q1 2022 Trade-in services grew to about $1.6 trillion, an increase of about 22 per cent relative to Q1 2021, and a rise of about 1.7 per cent relative to Q4 2021. The report shows that most economic sectors recorded substantial year-over-year increases in the value of their trade-in Q1 2022. High fuel prices are behind the strong increase in the value of trade in the energy sector. Trade growth was also above average for metals and chemicals. By contrast, trade in the transportation sector and in communication equipment has remained below the levels of 2021 and 2019. The report says the evolution of world trade for the remainder of 2022 is likely to be affected by slower-than-expected economic growth due to rising interest rates, inflationary pressures and concerns over debt sustainability in many economies. The report states that the war in Ukraine is affecting international trade by putting further upward pressure on the international prices of energy and primary commodities. In the short term, because of the inelastic global demand for food and energy products, rising food and energy prices would likely result in higher trade values and marginally lower trade volumes. Other factors expected to influence global trade this year are continuing challenges for global supply chains, regionalization trends and policies supporting the transition toward a greener global economy, added the report.

Flows of foreign direct investment (FDI) recovered to pre-pandemic levels last year, hitting nearly $1.6 trillion but the prospects for this year are grimmer, the latest UNCTAD World Investment Report said. The report entitled "International tax reforms and sustainable investment" said that to cope with an environment of uncertainty and risk aversion, developing countries must get significant help from the international community. Developing Asia, which receives 40% of global FDI, saw flows rise in 2021 for the third straight year to an all-time high of $619 billion. FDI in China grew 21% and in Southeast Asia by 44% but South Asia went the other way, falling 26% as flows to India shrank to $45 billion. "The need for investment in productive capacity, in the Sustainable Development Goals (SDGs) and in climate change mitigation and adaptation is enormous. Current investment trends in these areas are not unanimously positive," said Rebeca Grynspan, Secretary-General of United Nations Conference on Trade and Development (UNCTAD). Read: Padma Bridge to lead to unprecedented improvement in communication system: Kamal "It is important that we act now. Even though countries face very alarming immediate problems stemming from the cost-of-living crisis, it is important we are able to invest in the long term." Coming off a low base in 2020, global FDI flows rose 64 percent to $1.58 trillion last year with momentum from booming merger and acquisition (M&A) activity and rapid growth in international project finance due to loose financing and major infrastructure stimulus packages. Explore UNCTAD’s interactive data visualization on FDI inflows and outflows in countries and regions over the last 30 years. While the recovery benefitted all regions, almost three-quarters of the growth was concentrated in developed economies as FDI flows rose 134% and multinational companies posted record profits. Flows to developing economies rose 30% to $837 billion – the highest level ever recorded – largely due to strength in Asia, a partial recovery in Latin America and the Caribbean and an upswing in Africa. The share of developing countries in global flows remained just above 50%. The reinvested earnings component of FDI – profits retained in foreign affiliates by multinational companies – accounted for the bulk of the global growth, reflecting the record rise in corporate profits, especially in developed economies. The top 10 economies for FDI inflows in 2021 were the United States, China, Hong Kong (China), Singapore, Canada, Brazil, India, South Africa, Russia and Mexico. 2022 Prospects This year, the business and investment climate has changed dramatically as the war in Ukraine results in a triple crisis of high food and fuel prices and tighter financing. Other factors clouding the FDI horizon include renewed pandemic impacts, the likelihood of more interest rate rises in major economies, negative sentiment in financial markets and a potential recession. Read: xBudget FY23: Kamal sees rising inflation as a major challenge Despite high profits, investment by multinational companies in new projects overseas were still one-fifth below pre-pandemic levels last year. For developing countries, the value of greenfield announcements stayed flat. "UNCTAD foresees that the growth momentum of 2021 cannot be sustained and that global FDI flows in 2022 will likely move on a downward trajectory, at best remaining flat," the report underline. "However, even if flows should remain relatively stable in value terms, new project activity is likely to suffer more from investor uncertainty." In 2021, FDI in Latin America and the Caribbean rose 56% – with South America’s growth of 74% sustained by higher demand for commodities and green minerals. For structurally weak, vulnerable and small economies rose by 15% to 39 trillion, however influx to the least developed countries, landlocked and small island developing states combined accounted only for 2.5 percent of the world total in 2021, down from 3.5 percent in 2020. The impact of the pandemic intensified fragility and investment in sectors relevant for the SDGs – especially food, agriculture, health and education – continued to fall. "In 2022, FDI flows to developing economies are expected to be strongly affected by the war in Ukraine and its wider ramifications, and by macroeconomic factors including rising interest rates," the report said. "Fiscal space in many countries will be significantly reduced, especially in oil- and food-importing developing economies." Investing in Sustainable Development Goals After taking a significant hit in the first year of the pandemic, international SDG investment jumped 70% last year. But most of the recovery growth came in renewable energy and energy efficiency, where project values reached more than three times the pre-pandemic level. "While the 2021 recovery in value terms is positive, investment activity in most SDG-related sectors in developing economies, as measured by project numbers, remained below pre-pandemic levels," the report said. Read: Around US$ 4 billion invested in private economic zones : Kamal "Across developing Asia, investment in sectors relevant for the SDGs rose significantly," the report said. "International project finance values in these sectors increased by 74% to $121 billion, primarily because of strong interest in renewable energy." International project finance is increasingly important for Sustainable Development Goals and climate change investment. Some positive steps in these areas in 2021 could be tested this year. Announced international project finance deals hit a record of 1,262 projects last year and more than doubled in value to $656 billion. The introduction of a global minimum tax on foreign direct investment will have important implications for the international investment climate but both developed and developing countries are expected to benefit from an increased revenue collection.

The National Board of Revenue (NBR) has started the test operation of a hotline to provide services related to ASYCUDA World Systems for customs. The hotline number is 16134. The traders will get this service from May 15, 2022, NBR director (public relations) Syed A Mumen confirmed to UNB on Saturday evening. The Automated System for Customs Data (ASYCUDA) is a computerized system designed by the United Nations Conference on Trade and Development (UNCTAD) in Geneva to administer a country's customs. Read: NBR may miss revenue target Tk 3.30 trillion this year too The service recipients will get any service related to customs calling that hotline number. The hotline will be open every working day from 9 am to 5 pm. The regular call charges will be applicable for getting services on the hotline. Mumen said that through the hotline, the service recipients will be able to know about the existing customs related laws and regulations in the country, including customs related services, necessary information and advice. According to NBR, ASYCUDA World Systems is used to facilitate the import-export process and reduce the risk and generate revenue in the shortest possible time. At present, six customs houses affiliated to the NBR, 26 customs stations, 20 off-docks and EPZs are operating through the ASYCUDA World Systems. Read: NBR works for win-win tax in upcoming budget: Finance Minister Officials working in customs offices, port authorities, Bangladesh Bank, Sonali Bank, Bangladesh Biman, Shipping Agent, C&F Agent, Freight Forwarders, Feeder Operators and various commercial and non-governmental organizations including all commercial banks are using this system.

Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), has been made a member of the United Nations Conference on Trade and Development (UNCTAD). The Secretary-General of the United Nations has invited Dr Fahmida to join as a Member of the High-level Advisory Board on Productive Capacities Index (PCI) of UNCTAD. UNCTAD launched PCI as a practical tool which will help member states to monitor and benchmark their progress and achievements in building new and enhancing existing productive capacities over time, and their potential to achieve the Sustainable Development Goals (SDGs). READ: Budget implementation failure lack of available data: CPD The PCI Advisory Board will advise UNCTAD on its research and policy-oriented agenda related to productive capacities. UNCTAD would include, among others, the expansion of policy and institutional frameworks, further development and refinement of the methods and international standards for the measurement of productive capacities. READ: Businesses in Bangladesh face challenges of inefficient administration, funding shortage and corruption: CPD study The Advisory Board on PCI will work in broad collaboration with the academia, policy makers, statisticians and experts working on related programs and endeavors.

Costa Rican economist Rebeca Grynspan has taken up her new role as secretary-general of UNCTAD for a four-year term. Grynspan, the first woman to serve as UNCTAD's secretary-general, was nominated for the post by UN Secretary-General António Guterres and approved by the General Assembly. "I am honoured to begin work at UNCTAD at a critical time for our world," Grynspan said. "Covid-19 has exposed the widespread inequalities and vulnerabilities of the world and the development model. As we recover from the pandemic, we have an opportunity to rebalance the global economy, boost resilience and ensure shared prosperity." "We must take action today to transform trade and reshape our global economy to overcome barriers to greater prosperity for all and embark on a sustainable development path that will benefit everyone," she said. Read: Rebeca Grynspan new Secretary-General of Unctad Grynspan said UNCTAD's 15th quadrennial conference, slated for October 3-7, will be an important opportunity for countries to make bold decisions to address the massive unmet trade, finance, investment and technology needs of developing countries struggling to meet both the Covid economic fallout and sustainable development challenges. Before her UNCTAD appointment, Grynspan was the Ibero-American secretary-general. She was the first woman to lead the organisation, too. She is also a former under-secretary-general of the UN and associate administrator of the UN Development Programme (UNDP), and a former regional director for Latin America and the Caribbean for the organisation. Before joining the UN, Grynspan served as vice president of Costa Rica from 1994 to 1998. She was also minister of housing, minister coordinator of economic and social affairs and deputy finance minister.

Rebeca Grynspan of Costa Rica will be the new Secretary-General of Unctad, the trade and development body of the United Nations.  Her nomination to the post by UN Secretary-General António Guterres was approved by the UN General Assembly on Sunday. Grynspan, the first woman and Central American to be appointed as Secretary-General of Unctad, is an economist and current Ibero-American Secretary-General. “I’m grateful and honoured for the trust the UN Secretary-General António Guterres has placed in me with this appointment as Secretary-General of Unctad,” Grynspan said.  READ: Investment decline in productive assets spells trouble for poorer nations: UNCTAD “I look forward to bringing my experience and commitment to development to this unique organization, whose history, mandate and recognized world-class expertise make it a key partner for all countries facing the challenges of post-pandemic recovery.” She added: “I believe that, at this critical time, Unctad can make an essential contribution to a more just, sustainable and inclusive recovery for all.” Grynspan has had a career spanning many years and has held several high-level positions, including, among others, former Under-Secretary-General of the United Nations and Associate Administrator of the United Nations Development Programme (UNDP). She has also served as the UNDP Regional Director for Latin America and the Caribbean, a member of the High-level Panel on Financing for Development, and Vice President of Costa Rica (1994 to 1998). Unctad Acting Secretary-General Isabelle Durant welcomed the appointment and said: “This is great news for Unctad. The timely coming on board of Ms. Grynspan as our Secretary-General will be key to leading us in the implementation of a new chapter and mandate that will be decided by our 15th ministerial conference, UNCTAD15, in October this year.” READ: FDI down 42pc globally in 2020; UNCTAD expects further weakness in 2021

Although developing countries attracted a record share of global foreign direct investment (FDI) in 2020, finance for infrastructure and productive sectors fell significantly, weakening their COVID-19 recovery prospects.

Global foreign direct investment collapsed in 2020, falling by 42% to an estimated $859 billion from $1.5 trillion in 2019.

The value of global merchandise trade is predicted to fall by 5.6 percent in 2020 compared with last year, according to UNCTAD's latest nowcasts.