Global trade divides deepen amid push for friendshoring

Political and economic security worries lead to concentration of partners

20231023N Containerships

Countries are trading with a less diverse group amid geopolitical divides and economic security concerns. (Photo by Kosaku Mimura)

YOHEI HIROSE, Nikkei staff writer

TOKYO -- From Russia's war in Ukraine to U.S.-China tensions, international rifts are fragmenting global trade as countries focus on an increasingly narrow set of politically compatible partners.

The World Trade Organization expects 0.8% growth in global merchandise trade in 2023, the group said Oct. 5, a sharp downgrade from its April forecast of 1.7%.

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