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The ocean economy is under growing pressure from environmental and geopolitical shocks, according to the latest Global Trade Update from UNCTAD
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A vital driver of global trade, the $2.2-trillion ocean economy anchors global prosperity but climate shocks, policy fragmentation and shifting trade dynamics threaten its future
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UNCTAD is urging investment in climate-adaptive and resilient marine infrastructure
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The agency is also calling for a $2.8 trillion “blue deal” to fund mangrove conservation and restoration, decarbonization of shipping and fisheries, sustainable ocean-based production, and coastal and offshore wind energy
The ocean economy is under growing pressure from environmental and geopolitical shocks, according to the latest Global Trade Update from UN Trade and Development (UNCTAD).
A vital driver of global trade, ocean-based sectors such as shipping, tourism, fisheries, and marine energy accounted for 7% of global trade in 2023 with a combined value of $2.2 trillion ($1.3 trillion in services and $900 billion in goods). The ocean economy anchors global prosperity but climate shocks, policy fragmentation and shifting trade dynamics threaten its future, UNCTAD said.
Between 1995 and 2020 the ocean economy grew 2.5 times, outpacing the 1.9-fold growth of the global economy, said the agency, with much of this expansion coming from developing countries.
The ocean economy offers a path to greater food security, value addition and economic diversification
Amid threats of climate shocks, rising seas, pollution and biodiversity loss, UNCTAD is calling for stronger ocean economic governance and better data collection. It also urges investment in climate-adaptive and resilient marine infrastructure, more South-South trade, and scaled-up blue finance and sustainable marine-based innovations.
Tourism led the way, generating $725 billion, or one third of all ocean trade.
Other major sectors included maritime freight transport, ships and port equipment, and high-tech and manufactured goods, such as renewable energy, pharmaceuticals and electronics.
With the exception of China, developed and developing economies reported surpluses in ocean services, mainly tourism, but deficits in goods.
Small island developing states saw surpluses in both.
Least developed countries, many with large coastlines, faced ocean trade gaps across the board.
Tariffs, however, are now seen as a threat to fisheries exports
Specifically, new US tariffs on fisheries imports pose challenges for countries that depend on the American market.
Mexico and Canada are the most exposed but can export duty-free under the United States-Mexico-Canada Agreement, if rules of origin are met. Products from these countries that don’t meet the rules of origin face a 25% tariff.
For primary fisheries, compliance is simpler than for complex manufactured goods.
Meanwhile, aquaculture is on the rise.
Overfished stocks and rising demand are shifting the sector from wild capture to aquaculture.
Since the 1990s, wild capture has held steady at about 90 million tons. Aquaculture, by contrast, has surged from 22 million to 94 million tons in 2022, now accounting for more than half of aquatic animal production and 57% of aquatic food consumed globally.
Demand is also growing for sustainable marine materials. Seaweed-based plastics and other non-fossil alternatives are gaining ground. These can help tackle pollution and open new export markets for coastal and island economies, says UNCTAD.
Ocean-related aid reached just $2.4 billion in 2022 – far below what’s needed to meet global goals.
UNCTAD is calling for a $2.8 trillion “blue deal” to fund mangrove conservation and restoration, decarbonization of shipping and fisheries, sustainable ocean-based production, and coastal and offshore wind energy.
Without urgent investment, the ocean economy risks falling short of its potential to deliver sustainable growth and achieve the UN’s sustainable development goal.
For now, the worldwide ocean economy remains sustainable, according to UNCTAD, but how long it can be sustained is dependent on how well the nations of the world take care of the seas.
READ: Reciprocal tariffs should exclude vulnerable countries – UNCTAD
