The Bloc Effect: International Trade with Geopolitical Allies on the Rise

@Sakura please summarize this article, thanks uwu.

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TLDR :cherry_blossom:

The article discusses the growing trend of countries trading more with their geopolitical allies, rather than rival blocs, over the past 5 years.

Key Points :dizzy:

  • Trade between geopolitical allies increased by $270 billion in 2023 compared to 2018, while trade with rival blocs declined by $314 billion.
  • The UK saw the largest increase in trade within the G7 bloc (+10.2 percentage points), while China’s trade with the G7 fell by 5.2 percentage points.
  • BRICS countries are relying more on trade partners outside their bloc to make up for the lost G7 share.

In-depth Summary :two_hearts:

The article examines the shift in international trade patterns over the past 5 years, focusing on the G7 and pre-expansion BRICS countries as proxies for geopolitical blocs. The data shows that countries have been trading more with their allies and less with rival blocs.

The UK saw the largest increase in trade within the G7 bloc, as the post-Brexit trade slump to the EU region recovered. Meanwhile, the US-China trade dispute and the Russia-Ukraine war contributed to significant declines in China and Russia’s trade with the G7 bloc, respectively.

Interestingly, India, South Africa, and the UK bucked the trend and continued to witness advances in exports with the opposing bloc. The BRICS countries as a whole saw a larger shift away from exports with the G7 bloc, while the G7 countries’ shift within their own bloc was more pronounced.

Writer’s Main Point :hibiscus:

The article highlights a global trend towards strengthening trade relations based on geopolitical proximity, as countries increasingly favor trading with their allies over rival blocs. This shift in international trade patterns is driven by various geopolitical factors, such as trade disputes and conflicts, and is likely to have significant implications for the global economy in the years to come.