Standard Chartered First to Adopt ICC’s Principles for Sustainable Trade Finance

Dissecting Globalisation Trends: Insights from the Davos 2026 Gathering

Update The State of Global Trade: Insights from Davos 2026 This year's World Economic Forum held in Davos, Switzerland, has become a revealing platform for understanding the complex state of global trade. As trade dynamics evolve, they are starkly influenced by geopolitical tensions, economic fragmentation, and emerging trends requiring businesses to adapt swiftly. John Ferguson from Economist Impact articulated that the global trade order, as we have conventionally known it, is fading. His assessment coincides with Canadian Prime Minister Mark Carney’s alarming proclamation that the current international order is characterized by an intensifying great power rivalry, forcing nations to reconsider the foundation of global trade. Friendshoring and Friendvestment: New Terms for a Changing Landscape Among the significant trends emerged the concepts of "friendshoring" and "friendvestment." Friendshoring involves countries consciously choosing to relocate production and supply chains to places perceived as politically safer and more aligned with their values. Friendvestment complements this shift by encouraging investments strictly within those safe jurisdictions, thereby hedging against geopolitical risks. This recalibration signals a diversification strategy away from traditional dependencies, reflecting a broader resistance to global turmoil. Why Tariffs are no Longer Just Economic Tools Interestingly, the conversation around tariffs has shifted dramatically. No longer are they merely instruments of economic policy; they have become pivotal components of international power play. The discourse at Davos emphasized how tariffs and sanctions now dictate market access rather than just respond to local economic conditions. As highlighted by Fortune's report, tariffs should not be viewed as secondary measures but as critical players determining trade flows, compelling businesses to fortify their operational strategies accordingly. Building Corporate Resilience Amid Fragmentation The necessity for enhanced resilience within global supply chains has never been clearer. The shift towards proximity in trade—favoring markets such as Mexico and Vietnam over distant partners like China—demonstrates a strategic pivot manufacturers must adopt. Companies are urged to embed resilience into their operational ethos, shifting from mere efficiency to agility. Companies must now focus on cross-functionality and collaboration to seamlessly navigate between legal, operational, and geopolitical risks. Global Trade: Adaptation Not Retreat While it may seem that globalization is in jeopardy, the underlying story is not one of collapse but rather a reconstruction. The latest insights from the World Economic Forum indicate that trade has leveraged regional partnerships and clusters rather than a full retreat from global activity. The record values of global trade seen in recent reports suggest that success still exists, albeit through different frameworks. The focus is now on trustworthy relationships and sustainable practices, as echoed across various discussions at Davos. Future Predictions: Preparing for Ongoing Change The interconnected realities of trade mean that businesses must move past the era of complacency regarding geopolitical stability and economic unpredictability. Active preparation for ongoing disruptions will distinguish successful firms from those that falter. Companies must embrace a strategy of continuous investment in training and upskilling their workforce to be well-equipped for the evolving business environment as highlighted by the significant skills crisis facing many sectors. Insights and Implications for Import-Export Companies For import-export companies, these emerging trends are particularly critical. As global trade continues adapting to economic and political uncertainties, the ability to pivot quickly to emerging markets and build resilient supply chains will be essential for survival and growth. Understanding the implications of tariffs, engaging in friendly alliances, and nurturing trust in business practices will be paramount moving forward. In summary, while the landscape of global trade faces new hurdles, the opportunities for those willing to adapt and invest in robust and thoughtful strategies are abundant. This is a pivotal time for all stakeholders in the import-export sector to rethink and reshape their business models as they navigate through uncharted waters.