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Gita Gopinath
Harvard University
John Zwaanstra Professor of International
Studies and Economics
Globalization Vs. Nationalization
1. TRADE: RECENT PAST
2. TRADE: THE FUTURE
3. CHINA & INDIA
ROAD MAP
• TRADE: RECENT PAST
• TRADE: THE FUTURE
• CHINA & INDIA
ROAD MAP
Supply Chain Insights Global Summit 2017
#Imagine2030
Major Developments for Global Supply Chains: 1990s
1. Information and Communication Technology Revolution
2. Falling Trade Costs
3. Favorable Political Developments
Supply Chain Insights Global Summit 2017
#Imagine2030
Golden Age of Global Supply Chains
• Deepening Trade Liberalization and falling transport costs
Supply Chain Insights Global Summit 2017
#Imagine2030
World Trade Intensity
Supply Chain Insights Global Summit 2017
#Imagine2030
Changing Structure of Global Supply Chains: 1995
Source: OECD
Supply Chain Insights Global Summit 2017
#Imagine2030
Changing Structure of Global Supply Chains: 2011
Source: OECD
Supply Chain Insights Global Summit 2017
#Imagine2030
Global Supply Chains: Shift Eastwards
Source: OECD
Supply Chain Insights Global Summit 2017
#Imagine2030
Rising Income Inequality (Top 1%)
Roine and Waldenstrom, (2015
Supply Chain Insights Global Summit 2017
#Imagine2030
Trade Discontent (2014)
Source: Pew Research, 44 countries
Supply Chain Insights Global Summit 2017
#Imagine2030
Ominous Signs for Trade
1. Information and Communication Technology Revolution
2. Falling Trade Costs
3. Favorable Political Developments
Supply Chain Insights Global Summit 2017
#Imagine2030
World Trade Intensity
• TRADE: RECENT PAST
• TRADE: THE FUTURE
• CHINA & INDIA
ROAD MAP
Supply Chain Insights Global Summit 2017
#Imagine2030
PROTECTIONISM: RHETORIC Vs. FACTS
• No Reversal in Permanent Tariffs
• Increase in Non-Tariff barriers: 2% of trade
• Slowing of trade intensity
– 80% explained by economic activity/investment
– 20% by slowing value added chains and protectionism
Supply Chain Insights Global Summit 2017
#Imagine2030
LOOKING FORWARD
1. New Normal for Growth
2. New Normal for Trade Policy
Supply Chain Insights Global Summit 2017
#Imagine2030
#1 New Normal For Growth
World Advanced Emerging
2005 4.9% 2.8% 7.2%
2016 3.1% 1.7% 4.1%
2018* 3.6% 1.9% 4.8%
• Emerging Europe and Asia doing better than Latin America and Africa
Source: IMF
Supply Chain Insights Global Summit 2017
#Imagine2030
#1 New Normal For Growth: Weak Investment
Source: OECD
Supply Chain Insights Global Summit 2017
#Imagine2030
#1 New Normal For Growth: Policy Uncertainty
• US fiscal and regulatory reform
• BREXIT negotiations outcome
• Financial Risks in China
Supply Chain Insights Global Summit 2017
#Imagine2030
#2 New Normal For Trade Policy
• Trade Liberalization slowed since 2002
– Inconclusive Doha Round of WTO
• New Trade Agreements more contentious
– Intellectual Property Rights
– Harmonization of Standards
– Investment Dispute Settlement
– Agriculture
• Automation continue to scapegoat trade
Supply Chain Insights Global Summit 2017
#Imagine2030
#2 New Normal For Trade Policy
• World is moving on: Trade Negotiations in the works
– JEEPA: Japan-EU Economic Partnership Agreement
– EU-Canada Trade Agreement
– Trans-Pacific Partnership (11)
– RCEP Regional Comprehensive Economic Partnership: Asia,
South Asia and South East Asian
– T-TIP: Transatlantic trade and investment partnership
• TRADE: RECENT PAST
• TRADE: THE FUTURE
• CHINA & INDIA
ROAD MAP
Supply Chain Insights Global Summit 2017
#Imagine2030
China and India
CHINA INDIA
SIZE $11 trillion $2 trillion
GROWTH 6.6% 7.2%
DEMOGRAPHICS Ageing Young
FDI Rank #2 Rank #1
MAJOR DEVELOPMENTS
• China Belt and Road Initiative
• New Development Bank
• Chinese Infrastructure Investment Bank
• India Goods and Services Tax
Supply Chain Insights Global Summit 2017
#Imagine2030
TAKEAWAYS
• Globalization is not yet in retreat
• New normal for growth in trade intensity: 1-2%
• Look Eastwards

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Keynote Address - Globalization Versus Nationalization: The Future of Trade.

  • 1. Gita Gopinath Harvard University John Zwaanstra Professor of International Studies and Economics Globalization Vs. Nationalization
  • 2. 1. TRADE: RECENT PAST 2. TRADE: THE FUTURE 3. CHINA & INDIA ROAD MAP
  • 3. • TRADE: RECENT PAST • TRADE: THE FUTURE • CHINA & INDIA ROAD MAP
  • 4. Supply Chain Insights Global Summit 2017 #Imagine2030 Major Developments for Global Supply Chains: 1990s 1. Information and Communication Technology Revolution 2. Falling Trade Costs 3. Favorable Political Developments
  • 5. Supply Chain Insights Global Summit 2017 #Imagine2030 Golden Age of Global Supply Chains • Deepening Trade Liberalization and falling transport costs
  • 6. Supply Chain Insights Global Summit 2017 #Imagine2030 World Trade Intensity
  • 7. Supply Chain Insights Global Summit 2017 #Imagine2030 Changing Structure of Global Supply Chains: 1995 Source: OECD
  • 8. Supply Chain Insights Global Summit 2017 #Imagine2030 Changing Structure of Global Supply Chains: 2011 Source: OECD
  • 9. Supply Chain Insights Global Summit 2017 #Imagine2030 Global Supply Chains: Shift Eastwards Source: OECD
  • 10. Supply Chain Insights Global Summit 2017 #Imagine2030 Rising Income Inequality (Top 1%) Roine and Waldenstrom, (2015
  • 11. Supply Chain Insights Global Summit 2017 #Imagine2030 Trade Discontent (2014) Source: Pew Research, 44 countries
  • 12. Supply Chain Insights Global Summit 2017 #Imagine2030 Ominous Signs for Trade 1. Information and Communication Technology Revolution 2. Falling Trade Costs 3. Favorable Political Developments
  • 13. Supply Chain Insights Global Summit 2017 #Imagine2030 World Trade Intensity
  • 14. • TRADE: RECENT PAST • TRADE: THE FUTURE • CHINA & INDIA ROAD MAP
  • 15. Supply Chain Insights Global Summit 2017 #Imagine2030 PROTECTIONISM: RHETORIC Vs. FACTS • No Reversal in Permanent Tariffs • Increase in Non-Tariff barriers: 2% of trade • Slowing of trade intensity – 80% explained by economic activity/investment – 20% by slowing value added chains and protectionism
  • 16. Supply Chain Insights Global Summit 2017 #Imagine2030 LOOKING FORWARD 1. New Normal for Growth 2. New Normal for Trade Policy
  • 17. Supply Chain Insights Global Summit 2017 #Imagine2030 #1 New Normal For Growth World Advanced Emerging 2005 4.9% 2.8% 7.2% 2016 3.1% 1.7% 4.1% 2018* 3.6% 1.9% 4.8% • Emerging Europe and Asia doing better than Latin America and Africa Source: IMF
  • 18. Supply Chain Insights Global Summit 2017 #Imagine2030 #1 New Normal For Growth: Weak Investment Source: OECD
  • 19. Supply Chain Insights Global Summit 2017 #Imagine2030 #1 New Normal For Growth: Policy Uncertainty • US fiscal and regulatory reform • BREXIT negotiations outcome • Financial Risks in China
  • 20. Supply Chain Insights Global Summit 2017 #Imagine2030 #2 New Normal For Trade Policy • Trade Liberalization slowed since 2002 – Inconclusive Doha Round of WTO • New Trade Agreements more contentious – Intellectual Property Rights – Harmonization of Standards – Investment Dispute Settlement – Agriculture • Automation continue to scapegoat trade
  • 21. Supply Chain Insights Global Summit 2017 #Imagine2030 #2 New Normal For Trade Policy • World is moving on: Trade Negotiations in the works – JEEPA: Japan-EU Economic Partnership Agreement – EU-Canada Trade Agreement – Trans-Pacific Partnership (11) – RCEP Regional Comprehensive Economic Partnership: Asia, South Asia and South East Asian – T-TIP: Transatlantic trade and investment partnership
  • 22. • TRADE: RECENT PAST • TRADE: THE FUTURE • CHINA & INDIA ROAD MAP
  • 23. Supply Chain Insights Global Summit 2017 #Imagine2030 China and India CHINA INDIA SIZE $11 trillion $2 trillion GROWTH 6.6% 7.2% DEMOGRAPHICS Ageing Young FDI Rank #2 Rank #1 MAJOR DEVELOPMENTS • China Belt and Road Initiative • New Development Bank • Chinese Infrastructure Investment Bank • India Goods and Services Tax
  • 24. Supply Chain Insights Global Summit 2017 #Imagine2030 TAKEAWAYS • Globalization is not yet in retreat • New normal for growth in trade intensity: 1-2% • Look Eastwards