Global trade in 2023

What’s driving reglobalization?
Chatham House briefing Updated 8 February 2023 Published 30 January 2023 ISBN: 978 1 78413 556 0 DOI: 10.55317/9781784135560
Two women dispatch administrators in warm coats and face masks stand in front of monitors showing images of transport barges on water.

Marianne Schneider-Petsinger

Former Senior Research Fellow, Global Economy and Finance Programme; Project Director, Global Trade Policy Forum

The current pattern of economic integration and fracturing across different economies and sectors is best described as ‘reglobalization’.

Globalization is far from finished, but is changing in nature through countries’ emphasis on stronger regional links and the formation of economic blocs for sensitive and strategically important sectors. Full-scale decoupling from China is neither achievable nor desirable for the G7 and like-minded partners.

Trade policy has an important role to play in underpinning the positive aspects of a reglobalized world and in balancing geopolitical competition and cooperation, not just through coordinated efforts to strengthen supply-chain resilience, but also in enabling countries worldwide to benefit from the twin transitions to green and digital economies.

This briefing paper draws on insights from expert roundtable discussions and a high-level speaker series under the umbrella of the Chatham House Global Trade Policy Forum.