he paused tight and he is a bits that practice with nature in the driving seat. i was just absolutely astonishing. the license pulled back even not sorry for somebody. and i am again sophie, i sent you over to me when one by you, me, a ring companies revolutionizing this was the same using funds. and are you sending them in here? insight? you have science. you have technology, fast fries, phone out, your 0, the hollow. i'm adrian's, and again this is counting the cost on al jazeera, you'll. we can look at the world of business and he cannot mix this week, geo political tensions, climate change and technology plate will impact the way we move goods and services across borders. but could they complete the transform local trade,

as we currently know in countries around the world of bracing for donald trump's threatening tariffs, so which nations a set to lose or when if the measures are imposed and puts a spark of global trade? the resilience of supply chain just being tested like never before. businesses, nations facing challenges, as well as new opportunities to technology, play a role in restructuring logistics. the cobit 19 pandemic is laid by the vulnerabilities of global supply chains more than ever before. trade routes are being disrupted by geopolitical tensions, climate change, and technological advancements that's forcing governments and companies to rethink how goods and services flow across the board is nations across the world. a reevaluating everything from supply chain dependencies to trade pump is based on economic a national security concerns. as a result of protectionism is the rise regional trade blocks or emerging production

facilities are being moved closer to home. digital and sustainable solutions are increasingly being adopted. the shift is re shaping the world's trading system, but what's it gonna look like in the future? we'll discuss all of that with our guests shortly. but 1st victoria case and the reports global supply chains are in a state of flux driven in part by recent challenges, including the k with 19 pandemic. and to shift into politics due to us china trade tensions flooring, ukraine, and conflict in the middle east. we are in a period of the globalization or some people call it g o economic fragmentation, where we are seeing a realignment of trade relationships. particularly if you want to, you know, you have a, a group that's led by the us, a group led by china. and then you have no 9 countries. the impact of climate change and increased automation and digitalization. it'll say driving companies to

change how they operate. firms is shifting production closer to where they sell that goods and using a wide range of supplies from around the world, minimizing any potential disruption to their supply chains and reducing that carbon footprint. china is still the world's factory responsible for almost as the global manufacturing output. but that's changing in all the asian countries as well as mexico are reaping the benefits. recently tech joined, apple announced it's moving some small same production from china to india in viet nam us to we may come a tell is expanding operations in mexico and chinese manufacturer, high sense plans to make appliances for the us market in mexico rather than china. the developing nations have a lot to gain from changing trading relationships. they are able to go straight to digital without having to deal with legacy systems. so if you look at the huge

innovations taking place across africa, the middle ladies with regards to this 5 nation use of mobile international trade and trust both to try and you said that that she was potential with the election of donald trump, the world's 2 biggest economies the us in china orona collision course. trump has promised to impose high tires. don't chinese import. once he's back in the white house, threatening to destabilize markets across asia. it could perhaps also open new ones, but economists one high tar if could backfire globally. victoria gates and b l g 0 . so counting the cost global economic ties are changing and ways not seen since the end of the cold war trade between countries. but whole similar political views is growing more quickly than between countries with different views. according to the world trade organization i'm, there's been a spike in tariffs and trade barriers. such restrictions have more than tripled in the last 5 years. direct trade between russia and the west collapsed following the

russian invasion of ukraine. china's exports to the us dropped by 8 percent between 20172023, following a flare up in trade tensions of a tie, one chinese support for russia over ukraine. in the same period, us exports to china, decreased by around 4 percent. the i m f says the trade and investment of being rerouted through so called connect to countries like mexico, vietnam and the easy of poland, morocco helping to cushion the economic impact of direct trade. the coupling between the us and china, the return of donald trump, to the white house and the price of high a types of costs could impact all of that. well, the global trade system is highly vulnerable to disruption of a number of key points around the globe. 90 percent of trade goods are transported by see much of it passes through a few key sharp points. don't sit around the globe. disruption to any of them.

could have costly consequences for the global economy in the state of homo is, sees about a 5th of the world. oil and gas supply is passed through it every year. geo political tensions between their bond on one side of israel and the united states on the other side have raised concerns over the security of the strait. it really enforces aborted, detained a number of times because the in recent years, one of the 5th of maritime trade passes through the taiwan strait and taiwan produces 90 percent of the world's most advanced computer chips. china regards to the islands, it was a break away profit, and some that hasn't ruled out using force to retake it. such a move would have a major impact on global trade. climate change is also a concern around $500000000000.00 of goods passed through the panama come now every year. it's a key link between the atlantic and pacific oceans, but unprecedented drops of lower water levels in the canal, forcing authorities to restrict traffic by as much as 50 percent. let's

bring in a guess for our discussion on the program from brussels, we're joined by a hostile lea. lucky alma, a leading offer on trade diplomacy. you find east relations and the digital economy and the director of the european center, the international political economy from geneva withdrawn by kimberly both right. pit of sustainable traded will. the comic for him and from hong kong were joined by alejandro reyes. nonresident city, a fellow at the center on contemporary china and the world university of hong kong scholar and residence asia society, hong kong center. what's that, let's stop with you. what do you see as the biggest threats to global subtract supply chains right now out of the list? but that's a huge list that, that i gave you just a few moments ago. well, the nature of blackstone evans is that you can never really predict them your account about to rank them. but i think it's fair to say that we are living in

extraordinary times. or you could even say the impact to ordinary times. because the last, as he is we have is actually on there of extreme privilege. we've never, never had a period like this where east and west could trade with each other. we'd have a disruption in phone war rivalry, colonialism all communism. so in a sense, we are just returning to the normal. but some of the issues that we have discussed quite predictable, like the incoming trump administration. and the lateral actions that are planned by a number of governments which are they all have been quite transparent about they are all consequences of each other's reactions. and it's basically a no stand talks a cop tale of forgiveness. not for elizabeth protectionism if you like. whereas other issues, for example, like climate change will be much, much more in predictable. kimberly on that, no, do you do agree with, with what you heard just then we're talking about supply chains being in

a state of flux right now, but, but all they always when it's the very nature of the amount they changing, adapting as circumstances and technology evolves is there anything you feel that's particularly unusual about now? i think was particularly unusual about the moment we're in now is the massive energy transition that's called for in order to achieve the piracy agreement on climate change, which puts pressure on all nations and then has consequences for trade because countries will need to rethink where they are guessing the energy from they will need to rethink the components and inputs into those uh, energy mixes. and i do think that there is a big risk at the moment that trade tensions actually leave a lot of opportunities on the table. so for example, lowering tar s as opposed to raising tariffs on that in clean energy inputs could actually increase trade by 5 percent globally, united states or from the world trade organization. where as tyrus, for example,

if the u. s. was a levy terrace on canada. canada is a major source of the us is energy inputs that's on oil of course, but that is nonetheless still important to the us economy right now. so i think it's really important for countries to consider as really to look into that trade policies and get, get the mixture right as they undertake that transition and a way that ensures energy security, but also the energy transmission of the have are picking up on, on what the closer and kimberly was saying that what you see is as a, as the main threats, i mean at the climate change is going to have an impact, obviously, but trade tensions to people of become pretty used to seeing goods on the local shop. so shelves from all over the world is not going to change. do you think? i don't think that particular aspect of consumerism will change or you know, the available availability of choice. i think we might see prices kind of go up.

um, my main concern is the geo politics. uh, we know where donald trump stands. he. he thinks of terraces as the most beautiful word. and he's already announced and add that on day one of his administration, he will apply 25 percent tires on all goods from canada and mexico and 25 percent. at least the only more heavy levies on uh, goods from china. and he's linked it to, to the migrant border security problem in the united states. m to the pension of prizes the, the hope yards crisis in the united states saying, well, you know, i'm doing this to punish those, those countries um, for the migrant problem. and for the drug problem. so, um, i mean,

it sounds quite performative. uh, but the, in the bag will be significant because the disruptions will not just uh, may companies, manufacturers exporters to the united states, releasing the supply chains that already exist. but that'll take a long time for them to do so, but it will also have a significant disruptions to global trade. and indeed, um the, the, the, the rate of inflation around the world. and so these are policies that are being made not with any evidence or sense or logic, but they're all performative really and, and that kind of volatility, that kind of unpredictability, if you will, even though we know what kind of what's coming. i mean, that's create,

i think the problem is, risks for business risks for people who are in the supply chain business and at just low risk for the consumer concerns for the consumer plus a with a lot of talk about trade will a big find it around of the above and what exactly do we mean when, when we, when we say trade words, it sounds pretty frightening for, for those of us who has never experienced a trade. well, what does it mean for the likes of you? and i know i would actually like to dispute that statement because a bull practitioner sounds bad. we have been a constant state or trade, or since 1968. ever since the kennedy around people have tried to settle their differences, try rules via into governmental negotiations in geneva. and when they fail, they taking it lateral actions, whether it's over frozen chicken or cars, or we have to account about the data centers. this has been basically the norm.

it's only when the news actually hit the headlines that we are talking about tre tool. so in other words, trading the war is actually a normal state of things, but it is quite unprecedented until the 1st trumpet ministration, that the big on the right of that rule based on the united states have decided that the current rules don't work for us anymore. and try to force the all of these come to pods and the movies and allies are like into a re negotiation with the current rules. and they couldn't bring them by basically for us to meet with tires if they don't show up to the negotiation table. so from many of the businesses out there, they will see that they have a need a subject at the tires, or they have been subjected to this commission, or forced localization of the factories into export markets. so trade war with tit for tat action that has been actually

a part of the known. but it is seeing this coming from a major type of training partner like united states who has tried to abide by the rule. but that was a fault for these rules are going completely back on this problem is, is what's basically changed to print. kimberly whether the big global institutions fit into this institutions that are designed to facilitate trade and to mediate in disputes. organizations like the w t o for, for existence, which, for instance, while the, which a seemed well, i mean unable to do anything about the recent spots of a trade as well. the w. c. o is a membership driven organization composed of its $160.00 plus members. so in the end, they choose what they wish to, to move forward as how cert was saying. the ideal is that you bring a $160.00 plus governments to the table. you identify the optimum principles that

are going to govern, you'll economic, your domestic economic policy making. and that provides a degree of sizes and to, to the market which business particularly love. and i would argue, is absolutely fundamental as we undertake a massive energy and green economy transition. we need that 2nd t. however, we are into a political times. now, what achieving that agreement or what should be? the principles behind our economic policy making is going to be very difficult among the 160. now we still have this basis, the w show is there and it has its set of rules. the question is, how do we update that rulebook for the new challenges that are being faced? the digital economy, artificial intelligence at the green, the green transition. and i think bringing a 160 to the table around those questions will be challenging, as i've said. so we may need to look at what might be simpler, electro arrangements and we call those arrangements between a subset of countries a have, what do you make of what,

what kimberly was was saying is the w t o more or less irrelevant now as well. i think under the current circumstances, yes, to some extent, i mean there needs to be real reform or the wto for uh, you know, the united states to get back on board, but that's not gonna happen. no, ever, much reform. we might see for the next 4 years, the trunk of that it doesn't matter of, you know, i would make this point. i agree that you know, this was said earlier trade wars, it kind of the norm. yes. right. but i think there is an unprecedented nature to repeat that of the kind of level of jazz and where they're emanating from and what they're being used for. um and, and also i would also agree that or argue that the diversification of the supply chains particularly away from china is that

something new. and it's, it's we, we've had this kind of china plus strategy with many manufacturers, exporters from china, or investors in china who are investing and export the manufacturing they've been doing. and, and going to other countries like paying the days get um and, and, and, and, and indeed, been showing are near shoring to mexico and things like that. so we've seen a, a significant rise, and in this pre dates the pandemic. we dates from that as a rise in those kinds of exports going to the united states. now, the question is, the republicans have already raised the alarm about, well, you know, increased export imports coming from mexico. what's their provenance? are they coming from companies that are connected to china and those companies then might be cut off. so the geo politics again, creates a, a kind of uncertainty where because of this deal political risk,

there's this move towards the coupling and the web, the nice ation of trade in the name of national security. or because the united states wants to deal with these border problem, or whether it's drug prices or less for that back to tell us that, that i saw you shaking your head on a certain points, the red and nodding in agreement to a one point as well what do you have to say, 1st of all, on multi lateral organizations by the w t. a as well or kimberly's? absolutely. right. as she always is, uh, regarding the nature of that to you as a member of an organization. but i will also say this as a form of delegate to the document here, that's w t o was created in a time at the late eighty's and the rules when they go series is around a period of let's say, and the cold war. and the rules were practically designed to keep eastern europe on track towards democracy. market economy not necessarily to

tie down a state capitalist entities that we see today in east asia. nora is it designed to deal with jo, strategic tensions between arrivals because they was our unique period of time where they were not arrivals aside from a couple of countries that were not actually members of the dumpster here. you know, that was never to jo. was a set of rules that existed among a small cluster of countries that actually where they trusted each other. so the one of the mistakes, if you're like, uh, is that the membership has expanded to incorporate the countries that don't necessarily trust each other. this is actually outside the unique steps of, uh, let's say circumstances which drives us to a situation where that ability or has become complete the relevant i will make 2 points in context of this, which is that if the roles have stopped making sense,

we can clearly say that the 2 countries in the world, well, absolutely happy with us, come and circumstances are. they are one of these been united states because it has the ability to force other numbers into apps, a new organization, or a new, a negotiation or new agreements based on what they want. and the long term cost effectively used its terrorist to force people into the as that goes to the other one is china and things to its massive growth and internal markets. but also to a certain degree, it's his, him on a piece. caustic hemisphere morning hours in this region. it has become a very, very attractive power for those who are lord by it. and for everyone else. basically, we are living in the lucian, where we believe that the roost. ready pine, several pillows, all that i brought to you have already been coming dysfunctional. i mean, the addition to that, didn't any of them bastards now have i agree to speed up the appointment of

a director general who is very, very strongly disliked by the united states. but also trumpet mistakenly particular this is a declaration of war by the w t o, against somebody ministration. at the bare minimum, we will see the funding and bulky hub or activities in the t o. in the worst case scenario, we might even see united states leaving the government to you're trying to set up at the to 2 points that are elsewhere. kimberly, i mean, i got the feeling that books, well, i had to know he will correct me if i'm home, but the, to, uh, hosted on alejandro and i like kind of against trump in terms of his, his trade policies. is there any positive, i mean, can we find something positive in what? and what trump says what he's going to do in a 2nd. i mean, what's, what's wrong with protectionism? i'm putting america 1st. so i wouldn't comment on one nation's whether one nation is policies are correct or not. i think what is important is that every nation

looks at the economic policies settings as part of that project objectives for delivering growth and prosperity. so that's, that's and that's what trade policy is. it is ultimately a tool in the broader tool kits that governments have to deliver economic growth. now, there are also big debates across the world within nations and between nations. and whether growth is the pure objective and the only objective that we should be striving for, should we not also be striving for a healthy planet for that and just societies? and i think we, we've known for a very long time since we set the sustainable development goals in 2015 that we have to do all of that together. we have to do at social inclusion. we have to do environmental objectives and we have to, we cannot make grades, we cannot ignore any one of those pillars and trade ultimately, as a tradition, the more economic tool has to evolve to be able to at. so the other pellets as well

. but equally, we cannot forget that trade is fundamental about driving growth. so i would say simply that as governments set that trade policies they need to examine if those trade policies are going to drive sustainable growth for that populations or not, and not the basis on which they should be evaluating how successful they are. i don't know how to you, you were talking about connect to countries, the rise of connect to countries. let's, let's, let's talk about that for a moment. some of these countries, i suppose, found to benefit from a trade war, countries like vietnam, india, india, outside asia, mexico, we've component as well up, to some extent, some of them emerging economies to find themselves now playing a much bigger role in the improve global trade networks. that's a good thing, is this? yes, but you know, again, if they remain vulnerable, if the, the biggest player or the united states is going to look into, well, is this company that's exporting x to the united states?

is this owned by chinese interests or chinese interests that that's shifted their uh, production from mainland china to mexico and then exclude them. i mean, that's already on the radar screen of the united states legislators. and indeed, there is legislation in the united states that that will probably be revived in the next congress that would withdrawal permanent normal trade relations with, from china, which will have not just an effect on the us in china. well, i have an effect globally and an inflationary effect decides. so i mean the real. ringback of, of, of what paris are and what tires do. don't change just because donald trump says these, it's a beautiful word. and you know, he wants to use them as a tool to get people to the negotiating table doesn't. it doesn't change the fact

that if you impose these data, as it's not the country that you're trying to punish or the couple from or at the risk from or exclude, or whatever it's paying them. it's a tax on, on, on your consumers, on your citizens. and it's inflationary, i think the, by the end to ministration was quite remiss up not removing the initial tears, the trumpet imposed on china. and that was a, me a calls of inflation. and then you know, up to it, right. so i think that, um, okay, you know, you can use the ad tags as a tool, a casual, but what do you actually end up doing to? are you harming? what are, what are you are you actually gaining? and does it even help with the deficit? say, and i don't think that's going to be the case and that is where we're going to have to end our discussion. we're out of time up fascinating manufacturing data to all of your posts. a, kimberly. and i 100 good to have you with us on counting the cost. and if you'd

like to join in with the discussion, you can treat me. i'm at a thinking on x. try to remember to use the hash tag a j c t c, because then everyone joining the discussion to you could also drop us a line counting the cost of out of 0 dot net is our email address. as always, there's plenty more. few online out is there a dot com slash ctc that takes you straight to the page and then you'll find the individual reports links even in time additions to be the capture form. but is it for this edition of counting the cost i made right instead of going for the same here. thanks for joining us. but he is on al jazeera is next. the latest news that are to 100 pounds and listing people and families here are seeing that they have not received any single news with detailed coverage. this is the center of them off. this sort of braces i'll be taking place every single day as the fall of the form that i see from around the world. it is

a high time for the international community to come together to try and rebuild this can feet have already with the aspirations of the 2nd people's unique perspective. what could my community be gaining if we weren't spending money on all of those bonds? killing innocence in that i say 11 on, on her voices, the world has turned its back on so that our lives do match. so many people math or just as much as any other connect with our community and be part of the conversation. we feel very unsafe because of the 2nd 12 presidency. they don't see the need and then trying to appease the people on social media. the stream on out to 0. the jubilation among the serial dies pro, right? knew it wasn't even de, like in germany before they took to the streets, waiving the distinctive green and black flag of the opposition they gathered on the streets of the car is joy of that faces. clear to see has been used. the president

assets full spread like wildfire, scenes that with the to the brussels and in paris. the swiftness of the river let advance of the west side of the other. he took many by surprise, but the reaction of the serial the design. it's too clear to see now the question is, what happens next? a meeting of minds. unless we think deeper and ask people questions of what spanish stations of identity and social ideals of life, we're going to always have the same model architects and may, a valley and a 100 ravenna taught to. we may contribute us all it takes to create conditions to level the fields. because indian state, these are shortcuts, thoughts of quality studios be unscripted analogies, era. we don't simply focus on the public, it's of the conflict. it's the consequence of war, the human suffering definitely the 4th time. it is one of the most serious thoughts

of violence. in recent years, we brave bullets involved because we give voice to those demanding freedom the rule of law. and we always include the views from all sides. the . ready a serious near administration house, a number of diplomatic delegations for talks on its political transition, the funds, i may say them, this is i'll just say we're alive from the hall. so coming up 10 scenes in mozambique. ty is called confirms the governing policies victory in october has disputed election. the director of gods has come out or drawn hospital appeals to help saying is ready for.