Background on Rebeca Grynspan and UNCTAD
Rebeca Grynspan, the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), highlighted the resilience of global trade in 2025, driven by South-South trade among developing countries. This development occurred amidst protectionist measures initiated by the United States in 2025.
UNCTAD’s Global Trade Growth Projection
In late 2024, UNCTAD projected a record-breaking global trade growth of 6.8% for 2025, reaching $35.5 trillion, despite the wave of tariffs imposed by the United States on imports from almost every country, including those with existing trade agreements.
Context of US Protectionist Measures
During his presidency, Donald Trump implemented tariffs on goods from various countries using three justifications:
- Pressuring trading partners like Mexico and Canada to cooperate more on security issues, such as reducing fentanyl trafficking.
- Protecting sectors deemed vital for national security, such as automotive, steel, aluminum, copper, pharmaceuticals, and even home appliances.
- Reducing the trade deficit, which Trump claimed had escalated due to an alleged imbalance between the magnitude of tariffs paid by the US and those collected.
By the end of 2025, the average tariff rate imposed by the US had surpassed 15%, compared to just over 2% at the beginning of that year.
South-South Trade’s Impact on Global Resilience
Grynspan emphasized that, despite the protectionist policies, global economic growth remained robust, led by developing countries. She noted that 70% of global economic growth was contributed by the Global South, with South-South trade accounting for 30% of global trade in 2025.
- North-North trade (developed countries) constituted 30% of global trade.
- 40% of global trade occurred in both directions.
Grynspan’s Call for Latin American Integration
Amidst the US’s disregard for multilateralism, Grynspan urged Latin American countries to strengthen regional ties and solidarity, emphasizing that regionalism is a form of multilateralism in the current context.
Key Questions and Answers
- What is South-South trade? It refers to the commercial exchanges between developing countries.
- Why was South-South trade crucial in 2025? It contributed to the resilience of global trade amidst protectionist measures imposed by the United States.
- What was the projected global trade growth for 2025? UNCTAD forecasted a record-breaking growth of 6.8%, reaching $35.5 trillion.
- What were the justifications for US tariffs in 2025? The US cited security cooperation, protecting national security sectors, and reducing the trade deficit.
- What percentage of global trade was South-South trade in 2025? It accounted for 30% of global trade.
- What did Rebeca Grynspan advocate for in the context of US protectionism? She encouraged Latin American countries to strengthen regional ties and solidarity as a form of multilateralism.
