The TradeTech Paradox: Connectivity Amid Fragmentation
Global trade is entering a period of profound strain. Discriminatory trade policies have surged from just 55 in 2019 to more than 2,700 in 2024, while global merchandise trade growth is forecast to slow to only 0.5% in 2026. As geopolitics fragments supply chains and rewrites long-standing trade relationships, businesses and governments face rising uncertainty, complexity and risk. Yet, digital technologies are connecting markets in new ways, creating a paradox of unprecedented connectivity amid growing fragmentation.
Global trade is entering a period of profound strain. Discriminatory trade policies have surged from just 55 in 2019 to more than 2,700 in 2024, while global merchandise trade growth is forecast to slow to only 0.5% in 2026. As geopolitics fragments supply chains and rewrites long-standing trade relationships, businesses and governments face rising uncertainty, complexity and risk. Yet, digital technologies are connecting markets in new ways, creating a paradox of unprecedented connectivity amid growing fragmentation.
Written by the World Economic Forum in collaboration with the Ministry of Foreign Trade of the United Arab Emirates and the Abu Dhabi Department of Economic Development, The TradeTech Paradox: Connectivity Amid Fragmentation explores how technology can act as the connective fabric of global trade. Introducing the concept of the “tradetech stack”, the report examines how digital tools link institutions, regulators, enablers and enterprises through collaborative governance, cross-layer partnerships and strengthened human capacity.
Through real-world case studies, the report shows how aligning technology with cooperation can help build a more resilient, efficient and inclusive global trading system.