Trend Protectionism and sanctions pressuring supply chains and living standards

Summary

The report expects protectionism and sanctions to add pressure on supply chains, weakening economic performance, threatening jobs and eroding living standards. According to the report, supply chains are already strained by new technologies, changing trade relationships, rising protectionism and market-distorting practices. With trade growing from 43% of UK GDP in 1970 to 70% in 2022, the impact of such pressure is significant. Geopolitical tension is fragmenting trade relations, and supply chains can also be weaponised as a form of economic coercion. The report further suggests that strain on supply chains could raise tensions for international institutions and make trade disputes harder to resolve.