Developing Countries Lose 10% Exports to G20 Economies

A report by UNCTAD reveals that developing countries are losing 10% of their exports to G20 economies due to the inability to comply with increasingly complex non-tariff measures (NTMs). The report, part of UNCTAD's 2026 Global Trade Update, highlights that these NTMs have become significant constraints on international trade, particularly for least developed countries (LDCs).

Compliance with regulatory requirements, technical standards, health and safety procedures, and administrative compliance costs are reshaping global trade flows. The report indicates that while tariffs remain politically visible, regulatory compliance has become a dominant driver of trade costs, especially for developing countries in East Asia, South Asia, and Latin America.

UNCTAD acknowledges that these measures are not inherently protectionist but are designed to achieve legitimate policy objectives such as consumer safety and environmental protection. The report warns that the shift towards more complex regulatory measures is increasingly determining trade dynamics, especially in the context of heightened geopolitical tensions and supply chain risks.