Non-economic objectives, globalisation and multilateral trade cooperation

Abstract

Global trade and investment are increasingly affected by unilateral policies motivated by both economic and noneconomic objectives such as safeguarding national and economic security, combatting climate change, and promoting social values. Many of the associated interventions target the global value chains that have been a driver of globalisation. Taken together, the rise in unilateralism increases policy uncertainty and associated risk premia, distorts trade and investment decisions, and adversely affects prospects for developing countries to attain sustainable development goals. This new study summarises extant multilateral disciplines on use of trade policies motivated by noneconomic objectives, documents the rising use of such measures and presents pragmatic suggestions to sustain multilateral trade cooperation in a world characterised by rising geopolitical and geo-economic rivalry and existential threats.