Beware the dark consequences of fracturing trade alliances


Source: afr.com afr.com

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It is an inescapable reality that with the end of our post-Cold War holiday from history – apologies to Francis Fukuyama – trade has emerged as an arena for geopolitical rivalry. Over the past decade, governments have in several instances, unfortunately, weaponised trade and economic interdependence as a way of handling big and small power rivalries and disagreements. In Australia today, you are living this reality in your region. Weaponisation of trade is problematic, not least because it creates some challenges for the rules based multilateral trading system, but also because it could slide down the slippery slope beyond a...