The COVID-19 pandemic has altered the nature of trade diplomacy as countries now prioritize internal issues and the requirement for supply chain security. As a result, conventional strategies like free trade and tariffs have received less attention. As an alternative, nations are considering export restrictions, investment screening, and subsidies to safeguard their interests.
The pandemic's disruption of global supply networks, which has highlighted the vulnerability of nations that depend primarily on imports, has been one of the primary forces behind this transition. As a result, several countries are currently attempting to increase their domestic manufacturing capacities and lessen their reliance on imports. In addition, investment screening has increased as nations work to prevent foreign takeovers of their important sectors. However, the pandemic has also highlighted how crucial it is to retain access to necessities like food and medical supplies. As a result, some nations have put export restrictions in place to make sure they have enough supplies to meet domestic demand.
Politics has also played a role in the shift away from free trade and tariff-based policies as nations seek to safeguard their own economies and labor forces. This has resulted in an increase in government support for important industries through subsidies and other means.
Overall, the article emphasizes how trade diplomacy is evolving in the post-pandemic world as countries attempt to strike a balance between the need for economic growth and the requirement for security and resilience in their supply chains.
https://www.wsj.com/articles/in-new-world-of-trade-diplomacy-free-trade-and-tariffs-take-a-back-seat-ed896567?mod=economy_lead_story
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