The possibility of global economic governance in a period of great power rivalry

A structural shift is underway, running much deeper than the so-called trade wars that have been triggered by the US administration. Evidence of this trend starts to abound. In the past months, measures have been taken in places such as the US and the EU which will discourage the inflow of certain foreign investments, global companies have been induced to restructure their supply chains following geopolitical considerations and an increasing number of countries have been dismissing infrastructure projects with foreign funding.

G20 and deliverables on trade

Image: Centre William Rappard

Support the creditability of the WTO

The German G20 presidency will take place in difficult economic times. The outlook for the world economy remains weak: The IMF predicts in its World Economic Outlook that global growth will slow to 3.1 percent in 2016 and rise slowly in 2017. Trade growth has also slowed to annually 3 percent. Only half the growth rate before the financial crisis. The benefits of free trade and globalization are increasingly being questioned. Rising inequalities, and challenges of migration have led to populist and nationalist tendencies in many countries. The G20 summit in Hamburg in July 2017 needs to give a clear signal in favor of globalization and free trade.