Challenges in the Changing Global Trade Environment

The changing global trade environment presents challenges such as increased political drivers of industrial policy, national policies, and subsidies, leading to a less free trade environment. This shift towards more protectionist measures like tariffs, export controls, and carbon border adjustment mechanisms can significantly impact the cost of doing business, especially for the global south. While some of these costs are necessary for social contract redistribution, others stem from nationalism and corruption. The balance between these factors is uncertain, and the timing of when these changes will have an impact is an important consideration.