Global Trade Entering “Era of Fragmentation”

Trade is gradually becoming more fragmented and less global in scope, with a drop in cross-border capital flows, as countries form exclusive trade coalitions and agreements, writes Finbarr Bermingham for Global Trade Review, a publication that covers commodity, export and supply-chain finance industries. “The WTO, for its part, has failed to reach the stated aim of the Doha Round, which set out to create a global FTA, leaving member states frustrated at the lack of progress,” he writes. “Combined with rising geopolitical suspicions and cynicism towards fellow member states, blocs have attempted to strike out on their own, thus creating an environment in which splintered agreements are the new normal.” The director of research at the Hong Kong Trade Development Council also predicts that by 2050 there will be no dominant currency. The rise of the renminbi along with less reliance on the dollar could reduce US ability to enforce financial standards across borders and punish multinationals. – YaleGlobal