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Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021 GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis

While the establishment of international value chains has created wealth on a global scale, globalization has recently come under pressure. Trade distortions caused by Chinese intervention into markets and protectionist measures in several countries have worsened the political environment for free trade.

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Global Value Chains After the COVID-19 Crisis
Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021

GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis

ARTICLE OF THE GLOBAL TRADE AND INNOVATION POLICY ALLIANCE (GTIPA)

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While the establishment of international value chains has created wealth on a global scale, globalization has recently come under pressure. Trade distortions caused by Chinese intervention into markets and protectionist measures in several countries have worsened the political environment for free trade.

Integrated regional supply chains or new technologies that reduce cost advantages of global production can lead to a market-based re-organization of supply chains. The COVID-19 crisis also raised the issue of security of supply, as restrictions on international supply chains may have contributed to the economic downturn during the crisis.

Diversification of supply, reshoring, and stockpiling are relevant objectives, for which companies may be willing to pay a price. measures. Governmental provision of supply in the event of a global crisis may also be considered for very specific products—such as crude oil reserves. However, political intervention to force or to deeply subsidize reshoring has the potential to significantly reduce the wealth-creating effect of the global division of labor. Leveraging global value chains can often balance supply risks and help reduce costs. Security of supply should be managed by considering a range of options and costs at the company level. If global supply chains are utilized effectively, they can provide both wealth through the division of labor, competition, and a high level of security at the same time

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Global Value Chains After the COVID-19 Crisis
Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021

Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini: Global Value Chains After the COVID-19 Crisis

ARTICLE OF THE GLOBAL TRADE AND INNOVATION POLICY ALLIANCE (GTIPA)

Download PDF

Download Link GTIPA
Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021

GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis

Link to Global Trade & Innovation Policy Alliance (GTIPA)

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Policy options in the current debate
Galina Kolev / Thomas Obst IW-Report No. 4 21. January 2022

Global value chains of the EU member states: Policy options in the current debate

In 2020, EU companies imported intermediate products worth 2.4 trillion euros, which made up more than half of total merchandise imports of the EU. Compared to the pre-crisis year 2019, imports of intermediates decreased by 13 percent, partly driven by the ...

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Hubertus Bardt Event 2. December 2021

ITIF Conference: 2021 Global Trade and Innovation Policy Alliance Annual Summit

The Global Trade and Innovation Policy Alliance (GTIPA) represents a network of more than 40 world-leading think tanks dedicated to advancing a positive view of trade, globalization, and innovation for the benefit of the global community.

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