Notwithstanding signs of fragmentation, international trade remains buoyant, dismissing notions of a decline in globalisation, according to the World Trade Report 2023 by World trade Organization (WTO).

The WTO secretariat noted a subtle shift in the goods trade flows between two hypothetical geopolitical blocs delineated based on the UN General Assembly voting patterns. It was observed that trade within these blocs has been expanding at a pace 4-6 per cent swifter than the inter-bloc transactions. Contrary to predictions citing de-globalisation trends, the data underscores a resilient global trading network.

Diving deeper, the report probed into the intricate relationship between economic integration and three pivotal challenges engulfing the contemporary global economic landscape: security and resilience, poverty and inclusiveness, and environmental sustainability. There has been an escalating debate on the negative repercussions of globalisation in these spheres, citing it as a potential risk exacerbator.

Looking at the evidence, the report makes the case that ‘re-globalisation,’ which is the renewed drive towards integrating more people, economies and pressing issues into world trade, is a more promising solution to these issues than fragmentation.

A surge in trade openness has played a substantial role in mitigating conflicts and plummeting poverty rates dramatically over the past four decades. Moreover, the technological advancements fostered through trade have been pivotal in reducing carbon emissions, addressing environmental concerns proficiently.

The way forward lies in fostering heightened cooperation and encouraging more trade to successfully navigate the plethora of challenges, ranging from security issues to climate change, confronting policymakers globally, as per the report.

Fibre2Fashion News Desk (DP)

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