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Global Value Chain Trade Reaches Historic Highs, Despite Push for Reshoring

Africa - INTER PRESS SERVICE - Tue, 21/07/2026 - 09:07

By Maximilian Malawista
UNITED NATIONS, Jul 21 2026 (IPS)

Despite rising geopolitical tensions, trade restrictions and calls to bring production back to domestic shores, the global economy remains more interconnected than it may appear. Trade through global value chains (GVCs) reached historic levels in 2024, according to a new report from the Organisation for Economic Co-operation and Development (OECD).

GVCs, the cross-border production networks through which countries exchange materials, services and intermediate inputs used to produce goods and services, accounted for roughly 17 percent of global GDP in real terms between 2022 and 2024. This is up from approximately 16 percent before the 2008 Global Financial Crisis.

The findings stand to challenge expectations that the COVID-19 pandemic and geopolitical tensions would have on the campaign of de-globalization. GVC trade expanded rapidly before the Global Financial Crisis and later stabilized at historically high levels. Nevertheless, in 2024 inflation-adjusted GVC trade remained close to its 2022 peak, even as total global trade declined slightly from its 2022 level.

The distinction between real and nominal figures is particularly important following years of elevated inflation and volatile commodity prices. Rising prices can inflate the apparent value of international trade without representing an actual increase in the volume of goods and services exchanged. The OECD’s inflation-adjusted figures indicate that cross-border production itself has remained historically high.

Beneath that overall stability, however, industries have moved in markedly different directions. Manufacturing and transportation remain among the sectors most dependent on internationally sourced inputs.

Coke – a carbon-rich fuel produced from coal and primarily used in steelmaking – refined petroleum products, water and air transport, information and communication technology, electronics, rubber, plastics, chemicals, basic metals and motor vehicles all recorded GVC trade exceeding 35 percent of their gross output in 2024, indicating their heavy reliance on cross-border production networks.

While gains were recorded in those sectors, the motor vehicle industry became less internationally integrated over the period examined, falling from the sixth-most internationalized sector in 2011 to tenth in 2024, being overtaken by chemicals, air transport and electronic equipment.

Pharmaceuticals moved in the opposite direction. Despite increased policy attention toward strengthening domestic medical supply chains following the COVID-19 pandemic, pharmaceutical production became more dependent on internationally sourced inputs between 2011 and 2024.

GVC participation also increased notably in air transport and warehousing, highlighting the continued importance of globally connected logistics networks in supporting production.

The differences illustrate the uneven nature of supply-chain reconfiguration: while some industries have reduced their reliance on foreign inputs, others have become increasingly integrated into cross-border production networks.

The same pattern is visible across national economies. Of the 80 economies examined by the OECD, 49 had a higher share of foreign value added embedded in their exports in 2024 than in 2011.

Across the economies examined, countries generally relied more heavily on foreign inputs to produce their exports than they contributed inputs to exports produced elsewhere. For example, a country importing foreign-made components to manufacture and export a car is participating backward in a GVC. A country supplying steel that is then used to manufacture and export that car elsewhere is participating forward.

These patterns vary depending on the structure of each economy. Large economies such as the United States, China and Brazil are generally less reliant on foreign inputs because more of their production can be sourced domestically. Major commodity exporters such as Norway and Kazakhstan, meanwhile, rank highly in forward participation because their domestically-produced energy and raw materials become inputs in production and exports elsewhere.

Yet, increased GVC participation does not necessarily mean companies are simply buying more supplies from abroad.

Between 2019 and 2024, China, Japan, the United States and the European Union all became more reliant on foreign value in their exports. However, the OECD found that this was not primarily because companies shifted toward foreign suppliers. Instead, these economies increasingly produced and exported goods and services that themselves relied more heavily on international supply chains.

For example, an economy could begin sourcing more car parts domestically but simultaneously increase its exports of cars, which depend heavily on globally connected production networks. Its individual supply chains may become more domestic, while its overall economy becomes more integrated into global production.

The findings suggest that efforts to bring parts of production closer to home can therefore occur alongside deeper global economic integration.

Trade flows – the movement of goods and services across borders – only captures part of that interconnectedness. Multinational companies (MNCs) also operate and produce directly in foreign markets through foreign affiliates — companies they own or control outside their home country.

If a German MNC owns a factory in the United States, that American operation is a foreign affiliate. Products it manufactures and sells within the United States would not count as international trade, as they never crossed a border, yet the factory remains part of the German company’s global production network.

In 2023, foreign affiliates generated approximately USD 25.6 trillion in output, equivalent to one-quarter of global GDP and only slightly below the USD 26.6 trillion value of total world trade in goods and cross-border services.Together, MNCs and their foreign affiliates accounted for roughly 35 percent of world gross output in 2023 but only 60 percent of world exports, demonstrating their outsized role in international trade.

The geography of MNC production is also gradually broadening. While companies headquartered in OECD economies still controlled nearly 85 percent of foreign-affiliate output in 2023, the share of production involving non-OECD companies operating in non-OECD markets, nearly doubled from 4.9 percent in 2011 to 9.3 percent.

The report’s findings suggest that globalization is not simply retreating in the face of geopolitical fragmentation, rather global production is being reorganized across industries, companies and countries. Supply chains may be shifting, diversifying and adapting to new risks, but the networks connecting the global economy remain deeply entrenched and central to the production of goods and services.

IPS UN Bureau Report

 


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From the General Assembly to Harlem: Mandela’s Call to Action Endures

Africa - INTER PRESS SERVICE - Tue, 21/07/2026 - 08:48

Nelson Mandela, the former President of South Africa, addresses a press conference at UN Headquarters in New York in December 1991. Credit: UN Photo/John Isaac

By UN News
UNITED NATIONS, Jul 21 2026 (IPS)

Sixty-seven minutes. That is how long volunteers spent serving lunch to people experiencing food insecurity at Refettorio Harlem in New York City last week – one for every year Nelson Mandela gave to public service.

Diplomats stood alongside city officials and neighbourhood volunteers, dishing out plates rather than platitudes, in a small but pointed answer to a question the UN spent Monday asking in more formal terms: what does Mandela’s legacy actually demand of us now?

That question sat at the centre of the General Assembly’s commemoration of Nelson Mandela International Day, where the focus fell squarely on poverty and inequality – and on whether the world is living up to the example Mandela set.

Courtenay Rattray, Chef de Cabinet of the Secretary-General, addresses the General Assembly on the observance of the annual Nelson Mandela International Day. Credit: UN Photo/Loey Felipe

‘The wrong choices’

Secretary-General António Guterres, speaking through his Chef de Cabinet, Courtenay Rattray, did not mince words.

Mandela understood that the world’s deepest problems come from human decisions – and can therefore be undone by different ones, Mr. Rattray said.

Right now, he warned, the world is doing the opposite: pouring resources into militaries while poverty and development needs go underfunded. “There is something deeply wrong when we spend more on the instruments of destruction and death than on the tools of development and peace,” he said.

South African journalist and broadcaster Redi Tlhabi, addresses the General Assembly on the observance of the annual Nelson Mandela International Day. Credit: UN Photo/Loey Felipe

Beyond the myth

The sharpest words of the morning came from South African journalist Redi Tlhabi, the observance’s keynote speaker, who pushed back against the softened, reconciliatory image of Mandela that has settled into global memory.

She called him the “Inconvenient Mandela” – a man who stayed principled through imprisonment rather than negotiate his way out of it.

“Only free men can negotiate,” she quoted him telling his captors in 1985, when he was offered freedom in exchange for renouncing the struggle.

Reconciliation, she argued, was never where Mandela started. Justice was. “He never asked his oppressed to become comfortable with injustice. He asked the world to become uncomfortable with injustice,” she said.

Ms. Tlhabi turned that history into a direct challenge for today’s diplomats, pointing to the decades-long stalemate over reforming the UN Security Council – including the case for a permanent African seat – as proof that talk without risk changes little. “What are you prepared to risk for justice?” she asked the room.

General Assembly President Annalena Baerbock addresses the General Assembly on the observance of the annual Nelson Mandela International Day. Credit: UN Photo/Loey Felipe

Remembrance into action

Annalena Baerbock, President of the General Assembly, opened proceedings by insisting that Mandela Day must mean more than a moment of reflection. The point, she said, is to honour his legacy “not only through remembrance but through action.”

Volunteers from the United Nations and the diplomatic community preparing and serving meals at Refettorio Harlem to mark Nelson Mandela International Day. Credit: United Nation/Beatriz D’Alessand

That is where Harlem comes back in. The Refettorio Harlem meal service was one of a series of volunteer projects the UN ran with city partners to mark the day, and it gave literal shape to Ms. Baerbock’s point.

Shaffiou Assoumanou, representing Mayor Mamdani’s office for International Affairs, put it plainly: “History won’t judge us by the words we take, but by the actions we take.”

It was a modest event by UN standards – no cameras in the General Assembly Hall, no resolutions attached. But it echoed the same argument running through the day’s speeches: that Mandela’s fight against poverty and exclusion was never only an institutional project.

It played out in neighbourhoods, in shared meals, in the everyday choice to show up. Sixty-seven minutes at a time.

IPS UN Bureau

 


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Frappes en profondeur de l'Ukraine en Russie: à Omsk, dans le calme des rues, choc, stupeur et inquiétudes

RFI (Europe) - Tue, 21/07/2026 - 08:45
La frappe spectaculaire de Kiev sur la plus grande raffinerie de Russie à environ 2 500 kilomètres de la ligne de front le 7 juillet dernier n'a pas d'impact marquant sur les approvisionnements ni la vie quotidienne. Elle a en revanche laissé une profonde empreinte sur l'état d'esprit des habitants.
Categories: Union européenne

80 militaires des FARDC formés au combat en jungle et au respect du droit humanitaire à Beni

Radio Okapi / RD Congo - Tue, 21/07/2026 - 08:43


Quatre-vingts militaires des Forces armées de la République démocratique du Congo (FARDC) ont entamé lundi 20 juillet à Beni, au Nord-Kivu, un stage intensif de 45 jours axé sur le combat en milieu forestier et le respect du Droit international humanitaire.

Categories: Afrique

En Sierra Leone et au Liberia, plongée dans l’enfer du kush, drogue de synthèse aux effets dévastateurs

LeMonde / Afrique - Tue, 21/07/2026 - 08:10
« L’Afrique sous emprise » (2/6). Vendu à bas prix, le kush provoque une addiction fulgurante et des blessures graves, souvent mortelles. Le photographe Gaël Turine s’est rendu à Freetown et à Monrovia pour témoigner des ravages de cette nouvelle drogue chimique sur les jeunes Sierra-Léonais et Libériens.
Categories: Afrique

La direction du Parc national de Kahuzi-Biega consternée après l’abattage d’un gorille de Grauer

Radio Okapi / RD Congo - Tue, 21/07/2026 - 08:04


La direction du Parc national de Kahuzi-Biega (PNKB) s’est dite consternée par l’abattage, samedi 18 juillet, d’un gorille de Grauer dans le village de Musisi, au territoire de Kalehe, dans la province du Sud-Kivu. Dans un communiqué publié, lundi 20 juillet, le PNKB qualifie cet acte d’atteinte grave à ce patrimoine naturel national et réaffirme son engagement à protéger la faune sauvage de cette aire protégée.

Categories: Afrique

Actualité.cd : « RDC : la C64 reporte sa marche du 22 juillet et fixe un ultimatum au pouvoir jusqu’au 15 août »

Radio Okapi / RD Congo - Tue, 21/07/2026 - 07:45

Revue de presse du mardi 21 juillet 2026


L’annonce du Dialogue national inclusif et les réactions qu’elle suscite continuent de faire l’actualité dans la presse parue ce mardi 21 juillet.

Categories: Afrique

Transnational Repression, Organized Crime, and Conflict in Southeast Asia

TheDiplomat - Tue, 21/07/2026 - 07:38
A conversation with Phil Robertson, a Bangkok-based human rights advocate.

« Certains ont été licenciés, d’autres sont expulsés de leur logement » : des dizaines de milliers d’étrangers chassés d’Afrique du Sud

LeMonde / Afrique - Tue, 21/07/2026 - 07:30
Au moins 67 000 ressortissants africains ont quitté le pays depuis le 27 juin, selon les autorités sud-africaines, alors qu’un mouvement de lutte contre l’immigration illégale sème la terreur dans les townships. Le nombre des départs pourrait être bien plus élevé.
Categories: Afrique

Does Myanmar Still Have One Government to Recognize?

TheDiplomat - Tue, 21/07/2026 - 07:16
Much of the world still views Myanmar through a narrow diplomatic lens that cannot encompass the full political complexity of its conflict.

Le général Eddy Kapend ordonne le retrait des militaires sur le site minier de Kisenkala

Radio Okapi / RD Congo - Tue, 21/07/2026 - 06:55


Le général Eddy Kapend, commandant de la 22ᵉ Région militaire, a ordonné le week‑end dernier le retrait des militaires du site minier de Kisankala (province du Lualaba). Cette décision s’inscrit dans le cadre de l’interdiction formelle de la présence des forces armées sur les sites miniers, rappelée par le gouvernement.

Categories: Afrique

Coupe du Monde 2026: à Madrid, une marée humaine communie avec les champions espagnols

RFI (Europe) - Tue, 21/07/2026 - 06:40
Une liesse populaire a envahi mardi 20 juillet 2026 les rues bondées de Madrid, la capitale espagnole, où plus d'un million de personnes est venu assister au retour triomphal de leurs champions du monde de foot, vainqueurs de l'Argentine. Les joueurs de la Roja ont paradé dans le centre de la ville. Un grand moment de joie d’une nation en pleine communion.
Categories: Union européenne

ASEAN Foreign Ministers Convene Meeting Under the Shadow of Iran War, Regional Crises

TheDiplomat - Tue, 21/07/2026 - 06:33
The bloc's foreign ministers are set to call for "the restoration of the safe, unimpeded, and continuous transit passage of vessels and aircraft in the Strait of Hormuz.”

Trump Needs to Defy History to End the Iran War

Foreign Policy - Tue, 21/07/2026 - 06:19
U.S. presidents are virtually never able to end the stalemated wars they start.

Armenian Democracy Faces a Threat From Within

Foreign Policy - Tue, 21/07/2026 - 06:01
A predatory opposition, fueled by external support, is gaining influence within the state.

European Union : European Commission gets intelligence liaison officers

Intelligence Online - Tue, 21/07/2026 - 06:00
The plan to set up a dedicated intelligence unit within the European Commission is finally seeing the light of day, albeit at a reduced scale (IO, 30/03/26). According to Intelligence Online sources, the institution headed by Ursula von der Leyen [...]
Categories: Defence`s Feeds

France/UAE : Former French PM Fillon leads way in building Franco-Emirati defence ties

Intelligence Online - Tue, 21/07/2026 - 06:00
Former French Prime Minister François Fillon, who held that role between 2007 and 2012, appears to increasingly be linked to [...]
Categories: Defence`s Feeds

Yemen : Electricity power battle shines a light on Saudi-Emirati divisions in Aden

Intelligence Online - Tue, 21/07/2026 - 06:00
By sending equipment in early July to boost the capacity of the power stations in Hadhramaut by 200 megawatts (MW) [...]
Categories: Defence`s Feeds

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