Topic: 2024-Supply Chain Stability
Country: Brazil
Delegate Name: Cailu Jiang
Topic: Supply Chain
Country: Federative Republic of Brazil
Delegate Name Cailu Jiang
Committee: Special Political Committee
School: Portage Central High School
The Covid-19 pandemic has raised many questions about the stability of the world’s supply chain. As climate change rises the world’s food supply and water resources are in risk of completely being annihilated. The Houthis in Yemen are blocking the Suez Canal raising cost shipping for ships. Inflation has risen the costs to unprecedented highs. Energy crisis in European nations. An international blockade of certain countries from participating in world trade are increasing costs. Various wars around the world, impacting stability of food chains, mineral resources. The Federative Republic of Brazil recognizes it is simply an understatement to say the world’s supply chain is at risk.
During the Covid-19 pandemic Brazil suffered reductions in manufacturing gross output and relative job losses as a result of the Covid-19 pandemic. Global trade within the first two months of 2024 fell about 50 percent in the Suez Canal while a drought forced the Panama Canal to drop about 32 percent (IMF). This forces many shipping companies to redirect through the Cap of Good Hope. This further increases prices and destabilizes global markets. Meanwhile, the Russia-Ukraine war has raised global food prices and brought energy concerns to many European countries. As of current predictions by the World Bank state Brazil’s economy will grow by 2.8 percent throughout 2024, however this could change through relatively as if conflicts such as Israel and Palestine continue then the Houthis will continue to allow limited passing of the Suez Canal. Potentially hurting Brasilia’s ability to further help sustain global prices such as on various natural resources.
Brazil recognizes the reality that most of the current states quo could not change. However, Brazil also recognizes the importance of mediating peace between the current ongoing conflicts. As a mediated peace between Israel and Palestine would prevent the further excursions by the Houthis in Yemen. As they have stated as long as the Israel and Palestine conflict continues they will continue erupting the Suez Canal in its trade. Brazil’s ratification of the Paris Agreement also commits us to reducing carbon-dioxide emissions in which, this could help reduce the effects of rapid climate change. This is beneficial as drought, and other natural disasters would have less effect on crops helping reduce global food prices. In summary Brazil will be taking strategic steps in further securing the global supply chain as the break up of it will result in economic decline across the global community. Brazil encourages cooperation in settling the problems regarding the global supply chain as it does not only hurt refugees but our very own economies that we depend on for survival.
Works Cited
https://www.imf.org/en/Blogs/Articles/2024/03/07/Red-Sea-Attacks-Disrupt-Global-Trade
https://pmc.ncbi.nlm.nih.gov/articles/PMC9550638/#sec0008
https://www.worldbank.org/en/country/brazil/overview
