The Reshaping of International Trade and Environmental Sustainability Through Re-Globalisation

This paper delves into the complex relationship between international trade and environmental sustainability, emphasising that trade can be instrumental in addressing environmental challenges. While acknowledging the potential negative impacts of trade on the environment, such as increased greenhouse gas emissions and pollution, the text highlights that effective environmental policies can mitigate these adverse effects and promote sustainable trade practices. It powerfully underscores the importance of recognising the global nature of environmental problems, as this recognition is crucial for practical international cooperation. The paper advocates for re-globalization, characterised by increased international cooperation and integration, to facilitate services trade growth and reduce carbon intensity through broader utilisation of digital technologies. This paper also explores the concept of 'green comparative advantage,' suggesting that with appropriate environmental policies, trade can empower developing economies to benefit from new trading opportunities arising from the green transition. It concludes by highlighting the crucial role of international cooperation in environmental policies, enabling knowledge transfer, cost reduction, and a more effective global response to environmental challenges.