Pressing challenges like climate change require a coordinated, multilateral response. So too does the trend of economic nationalism spreading around the world. A multilateral green trade pact focused on decarbonising heavy industries and bringing prosperity to working people would provide an important counterpoint to the Trump administration’s country-specific tariffs, and a creeping unilateralism that sees trade as a zero-sum game. Importantly, it would also demonstrate that a renewed commitment to international cooperation can align climate, trade, and industrial policy to meet the challenges of the 21st century.
Such an arrangement would require bold creativity and innovative new systems. Traditional free trade agreements are not designed to reward low-carbon producers with better market access; to encourage state investment in industrial modernisation; or to support diverse and resilient supply chains. World leaders must therefore consider what a positive, alternative vision of international trade could entail, recognising that the earlier trade paradigm won’t return – not only because of the Trump administration’s flouting of global norms, but because urgent challenges like climate change, global inequality, deeply integrated supply chains, and the need to maintain fair and open global markets require a different approach.
The above excerpt was originally published in The Interpreter.
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