Sustainable Trade Index 2023

Foreword

The global trade system is experiencing fragmentation that threatens to erode the achievements of 70 years of globalization. Protectionist trade policies are being implemented under the guise of responding to the headwinds of post-pandemic inflation and geopolitical tensions. And while global trade continues to expand in value, that is mainly due to higher commodity prices. Through the STI, we are measuring these policy changes. Non-tariff barriers have risen; trade costs are on the rise, with worsening logistics performance and rule of law; and we are seeing negative changes in societal indicators such as forced labor and trade in goods at risk of modern slavery. Environmental indicators showing negative trends, such as wastewater treatment and energy intensity, also represent challenges in need of collaborative solutions. On the bright side, most STI economies are increasingly relying on renewable sources of energy, and many have reduced their air pollution levels and seen a rise in the net inflow of foreign direct investment. We hope that by highlighting these critical issues, the STI will prompt dialogue about the future direction of trade policy and set us back on a path of sustainable globalization. At the Hinrich Foundation, we believe global trade is an essential ingredient for economic growth. But for trade to be sustainable, its economic, societal, and environmental outcomes must be in balance. The Hinrich-IMD Sustainable Trade Index (STI) is a framework for governments, businesses, and communities to shape strategies and policies that integrate global trade capabilities in ways that promote the prosperity and sustainability of economies.

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HINRICH-IMD SUSTAINABLE TRADE INDEX 2023

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