Global Trade In Flux: Navigating Policy Volatility And Structural Shifts

Friday, 21 March 2025, 8:53 am
Press Release: UN Department of Global Communications

International trade is once again in the spotlight. A new
Monthly Briefing from UN DESA examines the evolving
dynamics, offering insights into both the risks and
potential opportunities ahead.

Structural shifts in
global trade

Global trade is undergoing profound
changes, with globalization evolving along different
dimensions. Services, rather than merchandise, are
increasingly driving trade expansion, while policy
uncertainty and shifting partnerships continue to reshape
markets. Changes in sourcing patterns are reconfiguring
global value chains, even as countries’ key trading
partners are changing.

Tariffs and trade: Lessons
from the past

With tariffs in the headlines,
experiences from the recent past offer some insight.
Research shows that the 2018–2019 U.S.-China trade
tensions raised costs for businesses and consumers,
prompting supply chain adjustments. While some industries
benefited from protectionist measures, others faced
disruptions.

These outcomes are consistent with
economic theory, which also suggests that trade restrictions
often redirect, rather than eliminate, trade imbalances.
These restrictions can also contribute to inflation and
reduce overall economic efficiency.

Who stands to
gain?

Despite several downsides, shifting trade
patterns could create new opportunities for some economies.
As major markets rethink their supply chains, developing
countries—particularly in East and South Asia, as well as
parts of Africa and Latin America—may find openings in
low- and mid-technology industries, such as apparel,
footwear, and furniture manufacturing.

Advertisement – scroll to continue reading

Developing
countries could also benefit from the rapid expansion of
digitally deliverable services. Progress in artificial
intelligence, for instance, promises to enhance
accessibility, efficiency, and innovation in sectors such as
education, healthcare, recreation, and financial
services.

While uncertainty remains, history has shown
that trade flows adapt to circumstances. For developing
economies, strategic positioning and diversification could
transform today’s disruptions into tomorrow’s growth
opportunities.

© Scoop Media

Using Scoop for work?

Scoop is free for personal use, but you’ll need a licence for work use. This is part of our Ethical Paywall and how we fund Scoop. Join today with plans starting from less than $3 per week, plus gain access to exclusive Pro features.

Join Pro Individual
Find out more

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}