Trade and Sustainability in an Era of Re-globalization

Since the outbreak of the COVID-19 pandemic, global trade and the rules-based multilateral trading system have experienced unprecedented disruptions and mounting challenges. While COVID-19 is a well-known cause, many other problems are arguably more fundamental and hence likely to have a systemic and enduring impact. One prominent problem concerns the nexus between trade and sustainability. The early 2000s were dominated by ‘trade and … ’ debates that explored the intersection of trade and environmental and social values. Since the mid-2010s, however, that nexus has been increasingly warped through the rise of economic nationalism and (green) industrial policy, the escalation of geopolitics, and strategic competition among major powers, amongst other factors. Cumulatively, these disruptions and challenges have pushed governments to shift their thinking, strategies, priorities, and even their definition of the ‘end goal’ of trade policy. With trade increasingly being viewed as a means rather than the end, resilience, diversification, national security, inclusiveness, and sustainability have become possible end goals of trade policy.