Global trade corridors and their long-term implications and opportunities were tackled by Douglas Lippoldt, a senior trade economist at HSBC, at an exclusive HSBC Commercial Banking Business Meeting.

Mr Lippoldt spoke to the audience about the findings from his latest research ‘Trade Chart Book – The Power of Corridors’, published on September 15.

“From a quick review of our findings, the extent to which trade is dominated by the big three (US, EU and China) is striking. But, the increasing share of trade for emerging markets is notable. In some instances, one can readily discern China’s inter-linkages with its neighbours via global value chain production,” said Mr Lippoldt.

Between 2004 and 2014, emerging economies increased their relative share of global exports and imports, according to the report. This shift has been fuelled not only by expanding trade between developed and emerging economies, but also by increasing trade between emerging economies – sometimes called ‘south-south’ trade.

Economists are pinning their hope for further trade liberalisation on a number of potential new trade agreements currently under discussion

“The examination of trade corridors shows that some countries, notably among the emerging markets, are not yet reaching their trade potential. South-south trade is growing but remains ripe for further development, provided that further trade liberalisation can be achieved,” explained Mr Lippoldt.

Economists are pinning their hope for further trade liberalisation on a number of potential new trade agreements currently under discussion. Among the largest are three proposed mega-regional accords: the Trans-Pacific Partnership between 12 countries in Asia and the Americas, the Transatlantic Trade and Investment Partnership between the EU and the US, and the Regional Comprehensive Economic Partnership between 16 Asian countries, including China and India.

“These agreements, if concluded and implemented successfully, could remove barriers to trade, reduce the cost of doing business across borders and provide a new stimulus to the world economy. We think that the time is right for policy makers to seek ambitious liberalisation,” asserted Mr Lippoldt.