The WTO confirms the resilience of value chains: reconfiguration in the face of the decline in global trade

 

 

El Report on the development of CVMs in 2025, presented by the World Trade Organization (WTO) along with entities such as ADB and the World Economic ForumIt confirms the resilience of value chains in the face of geopolitical and health tensions, highlighting a structural reconfiguration rather than a global setback.

 

"Reglobalization" as a response to uncertainty

 

During the presentation in Geneva, the Director General of the WTO, Ngozi Okonjo-IwealaHe emphasized the vitality of the international trading system. According to the data revealed, Global Value Chains (GVCs) have demonstrated a remarkable capacity to adapt to challenges such as the COVID-19 pandemic, climate pressures, and financial uncertainty.

 

Okonjo-Iweala He was emphatic about it: "This new report has reaffirmed something we've been saying in the WTOGlobalization is far from over, and global value chains remain indispensable. Although the share of global value chains in global trade has declined slightly from its peak in 2022, the drop is marginal, falling from 48% to 46,3% last year.

 

The key concept that the organization uses is the reglobalizationAccording to the Director-General, businesses and governments are not withdrawing from global integration, but rather "reconfiguring it to meet new economic, political, and social priorities." The goal is to diversify these supply chains to integrate more economies that were previously on the margins of the system.

 

The four dimensions of logistics and trade reconfiguration

 

The report, which is a joint publication of Asian Development Bank (ADB), Global Value Chain Research Institute (UIBE), IDE-JETRO, World Economic Forum and the secretariat of the WTO, identifies that this “rewiring” (rewiring) of the chains occurs through multiple dimensions:

• Geographic reconfiguration: Changes in the location of production.
• Technological transformation: Driven by digitization and automation.
• Innovation in governance: Through new industrial policies and targeted trade agreements.
• Environmental restructuring: Through green investments and carbon pricing mechanisms.

 

Key figures for the international scenario 2024-2025

 

The data analysis, which covers the period up to the end of 2024, suggests robust trade growth, despite political uncertainty and regulation-driven cost increases. However, significant funding gaps persist.

 

Indicator	Data / Figure	Context
CVM Participation (2022)	48 %	Peak recorded.
CVM Participation (2024)	46,3 %	Slight decrease, indicating stabilization.
Funding deficit	> 1 billion USD/year	Persistent shortage in trade finance.
New agreements (to 2024)	+ 180	Agreements focused on digital trade and critical minerals.

 

Challenges for emerging regions and new cooperation frameworks

 

The report warns that the current reconfiguration has largely benefited countries already established as suppliers. “We have seen policy-driven increases in trade costs and a sharp rise in political uncertainty. These are particularly burdensome for marginalized regions that lack an established track record of hosting multinational production,” it noted. Okonjo-Iweala.

 

To overcome these obstacles and make global value chains (GVCs) more decentralized and resilient, governance cooperation is changing shape. There is a shift from traditional bilateral and regional agreements toward more informal and targeted frameworks. The report highlights the signing of more than 180 trade agreements specifically aimed at digital commerce and critical minerals until 2024, tools designed to generate trust and predictability in the new landscape.

 

The document was presented by the editor-in-chief and former chief economist of the WTO, Robert Koopman, along with the chief economist of ADB, Albert Park, with the participation of leaders such as Zhao Zhongxiu (President of UIBE) and the President of IDE-JETRO, Fukunari.

 

Key points and frequently asked questions about the CVM 2025 Report

 

Has the era of globalization ended, according to the WTO?
No. The WTO It asserts that globalization has not ended, but is being reconfigured. Trade through value chains remains indispensable, and its share of the global total has only declined marginally.

 

Which regions are benefiting most from the current reconfiguration?
So far, changes in value chains have primarily benefited countries that were already established suppliers. Marginalized regions face greater difficulties due to political uncertainty and a lack of trade finance.

 

What types of trade agreements are predominant now?
There is a rise in "focused" and informal agreements on specific issues, rather than traditional treaties. Of particular note are more than 180 agreements signed up to 2024 focused exclusively on digital trade and critical minerals.