Deglobalization: an opportunity for Portugal?
The trend came from the past, but it was accelerated by the war in Ukraine. Restrictions on globalization were accentuated with the Russian invasion of Ukrainian territory in 2022, although barriers to world trade had arisen a few years earlier.
In 2018, then US President Donald Trump imposed heavy tariffs on those coming from China, accusing the Asian giant of unfair trade practices. The Chinese government retaliated with tariffs on more than 100 US products, creating the first serious jolt to globalization.
However, the covid-19 pandemic, which began precisely in China, caused serious disruptions in global production and distribution chains, meeting the supply of essential goods, from raw materials to semiconductors. Afterwards, the conflict in Ukraine provoked an energy crisis and determined the end of the West’s trade relations with Russia.
In the current context of global instability, the geostrategic importance of mitigating the West’s dependence on raw materials, energy and manufactures from autocratic states has been accentuated. Consequently, today we are witnessing the reduction of economic interdependencies between blocs, the deceleration of trade on a global scale and less recourse to the relocation of production.
In Europe, deglobalization is translating itself, not only in the rupture of trade relations with Russia, but also in the search for greater autonomy in the production of business goods and in the reconfiguration of the network of energy suppliers.
There is, therefore, a world scenario that advises against relocating production to the East and dependence on long-term distribution chains – which seems to favor the reindustrialization of Europe.
In this sense, deglobalization can be an opportunity for Portuguese industry, which in several sectors demonstrates production quality, responsiveness, intensity of innovation and commitment to sustainability.
But to take advantage of business relocation in nearby countries (nearshoring) and the regionalization of supply chains, our industry needs to attract foreign investment, find partners abroad, invest more in R&D and accelerate the digital and energy transition.
Deep down, it needs to gain scale to supply western markets, a circumstance that requires a national strategy to promote the created in Portugal.
Alexandre Meireles, president of the National Association of Young Entrepreneurs (ANJE)