Building Trade Resilience Amid Rising Global Market Barriers

Abstract

The global trading system is in the most fragmented state in several decades. Tariff, non-tariff, export and investment restrictions have combined to limit the openness that allowed the world to prosper after World War II. This article examines the anatomy of the trade barrier, demonstrates its quantitative impact on merchandise trade flows and provides an organized framework (the “Trade Resilience Framework”) by which firms and policymakers can develop the ability to adapt. Using data from the WTO, IMF and World Bank until early 2025, the article contends that resilience is now a competitive advantage and no longer simply a strategy for protection; and to develop resilience requires firms and investors to simultaneously invest in agility in their supply chains, diversifying their markets, enhancing their digital trade capabilities and developing diplomatic relationships with their stakeholders.