Is Free Trade Over?

Hey Jessinternational Affairs

Globalisation has been the norm for many years now,, and many of us cannot even think of a world where it wasn't the case. Trading with various countries, setting up agreements, having trade wars, that's just how its been. There has been a certain level of global cooperation that has seen us all sitting with iPhones or enjoying Brazilian coffee or driving German cars.

While consumer goods are what we notice when it comes to free trades, you'll be surprised at how integrated your country has become, we've all become importers and exporters and in doing so allowed specific industries to die.

One Trick Pony

Let's say for example oil countries like Nigeria, Norway, Canada and Venezuela have traditionally relied on this export to fund their other imports, and with the tiny exception of Norway, many have not diversified their economies as they sat on their cash cow.

Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold liberal economic positions. In contrast, economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade.

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Corona says it's over

International trade was already taking hits long before the virus came around, the Brits were exiting, China and the US were throwing their handbags at one another, the Saudis and Russians were obliterating the oil market, and these issues were going to see new trade alliances formed.

COVID-19 sped up the process and allowed everyone to shut their doors and take a break while they rethink their strategies. Many countries are going to blame China for their shutdowns and spread of the virus,, and we're going to see ties broken there.

Economies are on the brink,, and everyone's going to be looking for opportunities so new trade talks are going to be on the table, especially for those commodity-rich countries who will have the bargaining power or they shut down multiple industries.

Consumer and business travel will also change with more remote work being done, travel restrictions will increase, airlines will go out of business,, and all-around paranoia of letting people travel will set in for some time.

Nationalism and populism

Every country will be experiencing record job loss and to get things moving again you best believe offshore jobs will be brought home and the wealthier countries will focus on looking after their own before looking for outside help.

The focus will be on energy, agriculture and production independence for many of the wealthier nations and then secondly for favourable trade deals with individual countries.

It's going to be a "us first" approach as everyone tries to sort out their problems locally and because of this, plenty of countries will be even shorter on aid they need to survive.

Countries are large laborious and bureaucratic machines that cannot pivot quickly enough, especially when change is drastic. I think the rapid rate at which change is going to happen will see plenty of countries currencies collapse along with their economies.

I'll even go as far as to say it could result in some countries ceasing to exist.

Have your say

What do you good people of HIVE think? Do you think we're in for a global shakeup?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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