Sustainable Trade Index 2023

Conclusion

The relationship between increasing trade and greater sustainabilitymay, at a cursory glance, appear contradictory. However, if short-term gains in trade are pursued by, for instance, compromising social and environmental standards, this will inevitably lead to future policy challenges as environmental and social conditions become intolerable. It follows that a vital element in the pursuit of more trade is collaboration, characterized by fair and equitable trade agreements, and by jointly setting standards for environmental protection. Since environmental stewardship is a global concern, it demands a global solution. Economies that successfully align their efforts to enhance both trade and sustainability stand to reap substantial benefits; New Zealand, Singapore, and the United Kingdom being the three top-performing economies in pursuit of sustainable trade. Achieving this alignment requires a broad and coordinated effort, both within individual economies and on an international scale. The Hinrich-IMD Sustainable Trade Index serves as a valuable tool to highlight the strengths and weaknesses of various economies as they strive in this direction. It provides a compass guiding us toward a future in which trade and sustainability are not competing interests but complementary forces driving global prosperity. i. World Bank; Development Research Center of the State Council, the People’s Republic of China. 2022. Four Decades of Poverty Reduction in China: Drivers, Insights for the World, and the Way Ahead. Washington, DC: World Bank. ii. International Chamber of Commerce (ICC). 2023. Trade report: A fragmenting world. https://iccwbo.org/news-publications/policies reports/icc-2023-trade-report-a-fragmenting-world/. iii. Goldberg, Pinelopi K., and Tristan Reed. 2023. Is the Global Economy Deglobalizing? And if So, Why? And What Is Next? Brookings Papers on Economic Activity (March).

HINRICH-IMD SUSTAINABLE TRADE INDEX 2023

30