The United States placed 61st on a global trade index, which was compiled before the incoming US president’s so-called “Liberation Day” announcements, drawing criticism from around the world. This index compares the United States to other countries, evaluating trade barriers such as tariffs and restrictions (non levies) and the number of trade agreements made. The US faced limited trade and protectionist measures, leading it to land the 61st ranking out of 122 nations, as per a new report by Tholos Foundation, a US think tank founded by former Reagan.
The United States ranked 61st in this index, the thinking foundation found. Despite its non-tariff barriers, it faced challenges in trade agreements, which were limited and often omitted due to political issues. These factors, along with the existence of tariffs, led the US to a poor standing on the list. However, the report’s findings have prompted criticism for these measures, with many advocating for the UK’s demands to be included.
The Tholos Foundation’s analysis of trade barriers across 122 countries revealed that countries with fewer barriers experienced more prosperity, economic freedom, and environmental performance. Hong Kong, Singapore, and Israel were top-ranked due to their minimal trade barriers. Conversely, countries like Russia, India, and Indonesia held the lowest ranks, primarily because of their restrictive trade policies, particularly restrictions on services.
The foundation stated that the index found four pillars of trade problems: tariffs, service restrictions, non-tariff barriers, and trade facilitation. It emphasized that the us had two regions contributing to lower productivity and environmental performance: the Middle East and North Africa, and South Asia and Central Asia and Eastern Europe. It pointed out that the three most restrictive countries had lower labor participation rates, especially in South Asia and Latin America, where services were increasingly restricted.
The index is based on four pillars: tariffs, Modern, non-tariff barriers, and trade facilitation. However, critics of EU regulation pointed out that its digital market regulations were discriminatory, targeting content, market size, and physical location of data storage and processing. These measures have made foreign companies avoid the EU market by restricting hardware and software releases, leading to voluntary export restrictions.
The report by the Tholos Foundation has sparked criticism, particularly from the EU, arguing that its regulations hindered the US’s economic freedom and engagement in global exchanges. The foundation concluded that inclusive measures from other regions should also be considered, as the US struggles with its own protectionist stance. Oct 23, 2023.
