Is It the Beginning of the End of Global Free Trade?
Globalization today is facing its biggest test in decades. Britain’s vote in June last year to leave the European Union as well as the election of Donald Trump as president of the United States is leading to trepidation that the model, which has governed the global economy for so long, is seemingly crumbling. Populism is taking center stage in many regions across the globe and poses several questions around global trade.
Today, there’s increasing uncertainty around regional trade policies and pacts due to the prevailing anti-globalization sentiment. The decision of the United States to pull out of the Trans-Pacific Partnership deal is an indicator of this trend.
Protectionist measures are expected to have a ripple effect on global economic growth. The Conference Board predicts global economic growth to continue to stagnate throughout 2017 and remain tepid in both the advanced economies as well as emerging markets.
So what are the implications of these trends on procurement? GEP’s timely new report, Procurement Outlook 2017, throws light on what procurement and supply chain leaders must do to offset the anticipated slowdown in trade and sluggishness in global GDP that may arise from populism. You can read it here.