Confronting deglobalisation in the multilateral trading system

The first two decades of this millennium were marked by major political, economic, and geopolitical disruptions. The terrorist attacks of September 11, 2001, the global financial crisis (GFC), and the COVID-19 pandemic, illustrate just some of the developments that sparked the rise of populism and a backlash against globalisation in the world economy. The policy responses have in some cases hindered the process of international economic integration by interposing trade protectionism, discriminatory investment policies, and technological confrontations, among other challenges. This has led many analysts to predict that the world economy is entering a phase of ‘deglobalisation’ — that is, a retreat from the globalisation process. In view of the interest for a wider public, this study elaborates on the Think 20 (T20) Report finalised by the ‘Primo Braga Group of Experts’ and discusses in greater detail how to address deglobalisation by making the multilateral trading system and the World Trade Organization (WTO) regime work more effectively. It focuses on the main challenges faced by the multilateral trade system and the lessons that can be derived from the new generation of regional trade agreements (RTAs). The basic message is that investing in the improvement of the rules-based multilateral trading system is essential to prevent misconceptions about globalisation. The report concludes by proffering key recommendations to indicate steps that can be taken in the reform process by WTO members.