Dec 09 2024 24 mins 1
In this special edition of Current Accounts, the Hinrich Foundation’s podcast on global trade, the Association of Foreign Press Correspondents-USA sits down with Jia Hui Tee, Senior Trade Policy Analyst at the Hinrich Foundation, to discuss the rise of industrial policies and potential implications to trade and sustainability.
In recent years, industrial policies have become a primary focus for governments worldwide. These policies, aimed at strengthening domestic industries, have significant implications for global trade and sustainability. As identified in the Hinrich-IMD Sustainable Trade Index 2024, global trade is experiencing a protectionist shift, with nations implementing measures to fortify their domestic sectors and secure supply chains for strategic goods. This year's STI indicates a notable increase in both tariff and non-tariff barriers, particularly by economies such as the United States, India, and China.
With the heightened emphasis on supply chain resilience and national security, countries are increasingly focused on ensuring the production of strategic goods and technologies to maintain their competitive advantage. Such actions may have profound effects on trade outcomes, as highly protectionist policies could potentially strain international trade relations. It is, therefore, crucial to strike a balance in the application of industrial policies to prevent adverse consequences such as resource misallocation, trade fragmentation, and environmental harm.
Tune into this special episode as Jia Hui Tee, Senior Trade Policy Analyst at the Hinrich Foundation, delves into the rise of industrial policies, how they impact trade and sustainability, and what governments can do to minimize their negative impacts on their trading partners.
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