The impact of security concerns on trade

A series of crises over the past years has changed the perceptions about trade and interdependence. What used to be considered as critical to economic progress and security is now sometimes perceived as a source of risk that needs to be limited. Moreover, security concerns are no longer exclusively expressed in relation to conflict but encompass the much wider notion of economic security. As a result, security concerns percolate through trade policy more widely. This chapter highlights that despite disruptions in global supply chains, trade remains a source of security, especially when embedded in a multilateral rules-based system. It argues that fragmentation would weaken security and increase the likelihood of conflict, while re-globalization is a more promising avenue to strengthen security going forward.