Professor Wolffgang publishes article in the trade journal “comply”
September 27, 2024
Professor Wolffgang wrote in the current issue 3/2024 of the trade journal” comply” on pages 11-15 the article ‘The end of globalisation? Geopolitical uncertainties and reactions under foreign trade law’. In his article, he addresses the impact of geopolitical tensions on the international economy and trade policy. He states that the era of unhindered multilateralism is over and that globalisation is increasingly under pressure as new economic and military power blocs are forming.
In this context, he discusses the expansion of the BRICS alliance, which now includes countries such as Saudi Arabia and Egypt in addition to Brazil, Russia, India, China and South Africa. Prof Wolffgang points out that the West, particularly the USA and Europe, is losing economic importance, while the BRICS bloc is gaining increasing influence. Despite the West’s sanctions against Russia, the Russian economy continues to grow, as important countries such as China and India do not support these sanctions. China is now perceived as a threat by Europe, but an economic decoupling is hardly feasible due to the strong interdependence of the German economy with China.
He also emphasises in the article that the European Union is pursuing an active free trade policy in order to maintain its economic position. To this end, he refers to the numerous bilateral agreements that increasingly include sustainability standards, which, however, makes acceptance by the partner countries more difficult. At the same time, large free trade zones such as the Regional Comprehensive Economic Partnership (RCEP) are emerging in the Asia-Pacific region, which are increasing economic competition for the EU.
Further he looks at the situation in the USA and emphasises that protectionism has increased there as a result of the Inflation Reduction Act of 2022, which makes market access more difficult for European companies. The future of transatlantic economic relations therefore also depends on the upcoming elections in the USA.
In conclusion, Prof Wolffgang explains that the EU is trying to reconcile trade and security interests with its ‘de-risking’ policy. The EU is also striving for closer defence cooperation and the creation of a European Defence Union, which will also lead to new foreign trade regulations. He emphasises that globalisation has entered a new phase in which national and regional interests are gaining in importance and tariffs, sanctions and trade barriers will become increasingly relevant in international trade.
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