Global trade is slowing as protectionism and geopolitical tensions reshape the world economy. The IMF projects trade growth of only about 1.7% in 2025, far below global output. Ongoing tariff threats, especially between the U.S. and China, have led many countries to seek stability through regional and bilateral trade agreements. India, for example, is expanding its deals with Mercosur and the European Free Trade Association to reduce tariffs and boost investment. These partnerships offer businesses more predictable rules, new markets, and protection from global volatility. However, challenges like non-tariff barriers, complex regulations, and implementation gaps limit their impact. Still, as global cooperation weakens, regional trade pacts are becoming vital tools for economic resilience. The world is shifting from broad globalization to smaller, strategic alliances focused on stability and security in a more uncertain trade environment.
1 comment:
I find it interesting that regional trade is becoming a bigger source of income for countries, especially in the decline of globalism.
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