Afghanistan Global Trade Affected After The Unfortunate Takeover By Taliban

 In August 2021, in a matter of weeks, the Taliban seized control over Afghanistan, causing the democratically-elected government to collapse and a mass exodus of citizens and expatriates.

The Taliban, after the absence of 20 years, had taken control of Afghanistan.

From the look of it, Afghanistan’s formal economy is likely to crash. This would mean a humanitarian crisis, a refugee crisis, and political instability which is far worse than we are already seeing.

The key reason being that Afghanistan’s economy is heavily dependent on foreign trade. And there is no alternative that will make up for the sheer volume of funding that foreign countries have been providing for the last twenty years.

Afghanistan is staring right at a liquidity crisis. Around 80% of the Afghan government budget was funded by the United States and other foreign institutions.

40% of the country’s GDP which is 42.9% to be precise, came from foreign aid. Importantly, 4% of Afghanistan’s GDP comes from remittances, that’s money from overseas workers that get sent back home.

That’s one of the highest rates in the world and those remittances have not been able to reach Afghan people in the country who needs it.

EFFECTS OF TRADE UNDER THE CONTROL OF TALIBAN

This is no secret that trading is one of the most profitable businesses on the globe. We are trading internationally over the globe in the foreign market with various kinds of commodities.

Unfortunately, the trades have been affected in recent days in Afghanistan because of the Taliban. Afghanistan is under the risk factor by the control of the Taliban terrorist.

With the information available, it is stated that the incident will impact the whole world in a higher manner.

The business of import and export is widely affected by the interference of the Taliban terrorists.

After coming into power, the Taliban has started to implement their own rules & regulations, and terms & conditions causing instability in the global trades resulting in low level of import-export business. Therefore, the trade in this country is now declining.

However, many foreign countries depend on their importing products like spices, and dry fruits. Before the Taliban came into power, Afghanistan used to trade over millions of dollars, which is now lost.

Now the trade is derived by the new terms & conditions forced and implemented by Taliban Terrorists. This is so that the Taliban can apply additional charges for the import-export of the stocks.

With the increase in the interference of the Taliban, in the import-export business, many foreign institutions have canceled their tie-ups with Afghanistan.

ITEMS TRADING IN AFGHANISTAN

Export data of Afghanistan shows that they were trading in several goods over the globe, in the international market with different foreign institutions.

The top ten exports of Afghanistan according to its export data include Rugs and carpets with total coverage of around 45% of export. Dry fruits cover 31% of exports, and the rest 12% of coverage goes to drugs and medicinal plants for medical purposes.

 The import data of Afghanistan stated that the country stays dependent on the global trade for commodities such as apparatus, natural gas & petroleum, machinery, and other equipment, articles & metals, and other food products.

The current trade balance of Afghanistan according to the available data is around 6.36 billion USD deficit.

Both the trading of imports and exports after the collapse of Afghanistan are affected globally.

AFGHANISTAN TRADING PARTNERS

As per the list of the trade statistics 2021, the main global trade partners of Afghanistan include India, Iraq, Russia, Turkey, Iran, and Pakistan. At present, Turkey is taking over Afghanistan Airports for security measures.

Therefore it is difficult to even guess which of the countries will abandon or protect Afghanistan when the time comes.

CHALLENGES PEOPLE OF AFGHANISTAN ARE FACING WITH UNSATISFACTORY GLOBAL TRADE

The Taliban has closed all the possible portals that would bring opportunities for trading. Because of which demand for products used for daily life purposes is increasing in Afghanistan.

It is quite difficult and near to impossible for the people of Afghanistan to manufacture all the goods and products on their own in their country.

The lives of people in this country are in danger and require immediate action and help from world power.

CONCLUSION

In the above article, we have summarised the events taking place in the country of Afghanistan and how it is affecting the global trade of import and export.

 For any assistance regarding the Import-export business, you can connect with us @Info@eximtradedata.com as we provide up-to-date and highly researched import-export data based on the current market flow.

 

The Importance Of Import And Export Data

We all are very well aware of the term import and export right? But do we really know how the business of import and export runs? Well! If you wanna know what and how the business of import and export runs?  Then this article is for you.

As we all know, it’s not feasible for a country to manufacture all the products to be gobbled up by its own citizens.

And we also know that it’s not practically possible for a country to consume all of their manufactured products more than its necessity by themselves.

So when a country is unable to produce or manufacture something they want because of the lack of resources or anything, they get it imported. And when a country has something in the surplus amount they export it.

And that is how the business of import and export runs.

Importance of import and export data

In order for you to run a successful business in Vietnam Export Data 2020 and export, you must have authentic and accurate data on import and export that includes all the important and essential information about companies and businesses.

Given below are some of the reasons why it is important for companies to choose import and export data.

● The import and export data assist the companies to analyze and study the market and

its trend to help companies to make the right decision at the right time. 

● When you are in the import and export business it becomes important for you to have detailed and proper data. This is because data helps you provide all the necessary details and information about the importers & exports and their manufactured products.

● The data also helps the businesses and companies to know about the top importer and exporter and the strategies they use for their successful business. 

● The import and export data also helps you analyze the demand of the countries and its people to make accurate plans and strategies to meet their requirements.

● The data also helps you know about the current situation of the markets in every country.

Above are some of the reasons why and how import and export data helps you and your business to grow and become successful in a market that is full of competitors.

For more info visit site:https://eximtradedata.com

Impact Of Import And Export On The Economy & Its Interesting Facts

 As we all know and are very well aware of the fact that trading is one of the most valuable assets of the world economy. The process of selling and buying products and services on a bigger scale is called trading.

But when we trade products, services, and commodities in the international market, the term importing and exporting is used for selling and buying services and goods.

The process of buying services or products from foreign countries for domestic consumers is called Global importing.

Whereas the process of selling domestic services and products to foreign consumers is called Global Exporting.

The global export and import of services and products facilitate consumers and buyers from all around the globe to buy foreign or international products in their domestic markets.

International trade provides a wide range of products and services for the domestic consumer to choose from.

The international exports and imports can cause a pattern shift in the market economy of every country. If the imports of services and goods of a country exceed its exports, then there are chances of the country to lose its trade balance.

The economic background of a country is called a trade deficit.  Trade deficit occurs when the value of imported goods of a country is greater than the value of goods it exported.

Trade deficit will negatively affect the market of a country. Whereas, if a country exports more than it imports, then the net exports would be positive. This economic condition is known as trade surplus.

The trade deficit will lead a country to deprive the value of its currency, which is often known as devaluation. Devaluation is one of the biggest and most significant factors used for measuring the economic performance of a country.

A trade surplus of an economy can offer opportunities like employment as it requires more products to export. Resulting and creating demand for workers in the market as more people are needed to carry out the work, and to keep the factories running.

EFFECT ON EXCHANGE RATE

The relation between a country’s export- imports and its exchange rate are complex as there is a constant feedback loop between global trade and the way a country's currency is being valued.

The exchange rate has an effect on the trade deficit or surplus, which in turn affects the exchange rate of a country.

An increase in the level of imports leads to the outflow of funds. Imports of machinery and equipment indicate that the economy of the domestic country is growing as it increases the productivity of a country.

If a country imports services and goods more than it exports, it would make a negative impression on the exchange rate and on the value of the domestic currency.

Decreased domestic currency rate makes imports more expensive and provokes the level of export. Whereas, a higher exchange rate slows down exports and makes imports cheaper. 

There are possibilities of countries trying to devalue their currencies to stimulate and increase their international exports to gain an advantage over global trade. This practice is known as competitive devaluation.

A competitive devaluation is a man-made economic condition that refers to the strategic and comprehensive devaluation of the domestic currency to increase the volume of its exports.

EFFECT ON INFLATION

Inflation stands for the increase in the general price level of services and commodities in an economy over a time period. The import-export level of a country is highly influenced by inflation.

The money supply in the economy will increase when the interest rates are low. Higher inflation means a higher inflation rate and higher chances of having an increase in the level of imports as it encourages domestic people to become more competitive to purchase imported services and products.

If the price of services and goods are high, then the government will increase the interest rates to get a hold on the money supply in the economy to bring down the increasing prices of the services and goods.

Consumer spending decreases when the inflation is high as it increases the price of services and goods in the market.

Likewise, high inflation results in a decrease in imports, as consumers don’t have money to purchase international goods anymore. They would instead depend on domestic goods.

Consequently, we can state that the high inflation of a country decreases the exports of another country. 

When the inflation is high, which indicates that the consumer spending is low on international products but adequately good on domestic products, resulting in the increasing demand for domestic products.

ECONOMIC REPORTS

The best source of information data to track imports-exports of a country is the merchandise trade balance report. These reports are released consistently by most of the major countries on a monthly basis.

These reports contain analytical researched data full of information including details on the largest product categories for exports and imports, the biggest trading partners, and trends over time.

CONCLUSION

Import and export play an important role in strengthening the economy of a country.

 In the above article, I’ve provided you with some of the fundamentals of the impact of import and export on the economy and its major facts. If you have any doubt regarding import-export trade, you can connect with us at  info@eximtradedata.com as we provide solutions for your import-export business.