Economic Impact of COVID-19 on International Trade and Shipping

Covid- 19 is a humanitarian crisis on a global scale, which is a visible hand that caused the global economy to go platykurtic. International trade and shipping were the backbones of the world economy, but its volume halved during the lockdown with an almost 13% decrease in the global economy. This reduction was not only because of the detonating unemployment but also due to the failure of international laws, which ultimately led to a demand-supply crisis. Cargo ships and aircraft ceased the transportation of non-essential goods. This increased the cost of shipping, and thereby also of international trade. Thus, international trade regulations and laws proved little adequate to comply with this situation. Many countries are at the brim of recession. The governments and their policies are unable to give sufficient nor necessary incentives for markets. But this same economy is the answer to the question because trade can save lives and livelihoods. The existence of the original economy is at the mercy of trade laws. The Laws that are able to keep the supply chains flowing and keep international trade alive need to be formed. The problems that are needed to be addressed include not only the immediate resistance but also the long-term steps for the protection of the original economy. This paper is an in-depth examination of international trade laws and their impact on the global economy. It also deals with a detail analysis of the existing economic packages and the laws that are hindrances to its fruitful implementation.