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Recent Developments in Global Trade Policy

Global trade has experienced significant changes in recent years, reflecting the world’s economic, political and social dynamics. One of the latest developments is the implementation of trade agreements that focus on sustainability. For example, many countries are now integrating environmental standards into trade agreements to encourage environmentally friendly practices. This step aims to reduce the negative impact of trade on the environment, while still promoting economic growth. Another change occurred with the increasing role of technology in trade. Digitalization offers new opportunities for small and medium enterprises (SMEs) to access global markets. E-commerce platforms such as Alibaba and Amazon make it easier for companies from various countries to reach international consumers. Additionally, technologies such as blockchain are increasingly being used to increase transparency and efficiency in supply chains. The transformation of protectionist policies also needs to be monitored. Several countries, especially after the COVID-19 pandemic, have begun to prioritize this policy as an effort to protect domestic industry. However, while valid, this move often has the potential to cause trading tensions. For example, the United States and China are still involved in a trade war that creates uncertainty in global markets. Increasing tariffs and import restrictions have had a far-reaching impact, not only on the two countries but also on the global economy. It is also important to note the emergence of new trade alliances. Southeast Asian countries, through ASEAN, continue to strengthen economic cooperation to create a more integrated single market. On the other hand, the Regional Comprehensive Economic Partnership (RCEP) agreement involving China, Japan, South Korea, Australia and ASEAN countries creates a significant trade bloc, providing greater competitive advantages in the global market. Cybersecurity issues are also a major concern in trade policy. With increasing digitalization, threats to business data and information security require countries to implement stricter regulations. International cooperation in this case is very necessary to overcome risks and create a safe trading environment. Increasing awareness of social issues also plays an important role in today’s global trade. The world community is increasingly urging companies to be socially responsible. This is encouraging many companies to implement fair and ethical labor practices in their supply chains. New trade agreements often emphasize compliance with human rights and labor standards, responding to demands from consumers who are more aware of the social impact of the products they buy. In a geopolitical context, the huge influence of emerging powers such as India and Brazil in global trade cannot be ignored either. These countries demonstrated rapid economic growth, and with proactive trade policies, they began to dominate markets previously focused on by western countries. These changes in the flow of goods and investment provide a new perspective on global economic stratification. Global trade policy is increasingly tied to public health issues. The impact of the pandemic means that countries must be more aware of food security and public health. Sustainability of food supply chains is a key focus, with many countries seeking to increase self-sufficiency to reduce dependence on imports in crisis situations. Digital-based trading regulations are currently also developing. Some countries implement digital taxes for large technology companies that profit overwhelmingly from local markets without paying proportional taxes. This regulatory climate, if not managed well, could result in further shifts in the way companies operate in global markets. Overall, recent developments in global trade policy point to a complex and multifaceted direction, where international cooperation is more important than ever to create a trading system that is sustainable, fair, and responsive to the challenges of the times.