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G7 Trade Relations In Unchartered Waters: Future-proofing Trade Relations For A Changing Geopolitical And Geoeconomic Environment
Interdependencies in global trade are increasingly no longer seen as a win-win and welfareenhancing situation. Instead, they are perceived as a possible vulnerability, which can beweaponized for geopolitical purposes. In this challenging environment, G7 countries areattempting to strengthen supply chains for critical and strategic goods and technologies amongthemselves and with trusted partners. The current geoeconomic environment presents botha challenge and an opportunity for G7 countries to resolve older trade conflicts and addressnew trade disputes in more cooperative and strategic ways. The recent disruptions of theglobal value chain have centred the focus on security. Countries are now working to increasethe resilience of their supply chains and diversify their trade relations, also to counter China’spervasive influence in the economy through state-owned enterprises (SOEs) and subsidies.
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