World Bank Chief: Lower Tariffs Help Everyone! 🌍
Hey there! Have you ever wondered how countries trade with each other? Well, it’s a bit like swapping toys with your friends! But sometimes, countries have to pay extra fees called tariffs when they trade. Tariffs are like taxes on things bought from other countries.
Recently, the President of the World Bank, Ajay Banga, said that lowering tariffs is good for everyone! 🎉 He noticed that when countries reduce these extra fees, trade becomes easier and everyone benefits.
What’s Happening in the World?
In the last 10 years, countries have been making lots of new trade deals. These are agreements that help them trade more easily. For example, big groups of countries and regions in Asia have formed partnerships like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). These agreements help countries share goods and services with less hassle!
Why Is This Important?
Mr. Banga says that there’s still a lot of potential for countries to work together even more. 🌟 Almost half of the products that developing countries make are now being sold to other developing countries! By making it easier to trade—like having smoother border crossings and clear rules—countries can grow stronger together.
How Do Tariffs Affect Us?
Some developing economies have higher tariffs than others. This means they charge more taxes on imports, which can make trading harder. If one country charges high tariffs, other countries might do the same in return. 😕 This can slow down trade and make things more expensive.
The Benefits of Lowering Tariffs
By lowering tariffs for everyone—not just for favorite partners—countries can avoid these problems. History shows that when countries have open markets and trade freely, they grow faster and handle problems better. 🌱
What Can We Learn?
Mr. Banga encourages countries to talk and work together on trade issues. By doing so, they can create a more stable and happy global economy. So next time you trade toys or cards with friends, remember that countries are trading too, and working together helps everyone win! 🤝
Reference(s):
cgtn.com
