One of the prominent findings in the World Trade Organization’s (WTO) Global Trade 2021 report is on the phenomenon of globalization. The WTO characterizes the globalization-led "connection-effect" – which has been especially increasing among leading economies – over the global supply chain as a "double-edged sword."

In other words, globalization increases the "contagion-effect" in terms of economic crises among leading economies, catching them off guard. The report also points out that globalization affects the countries' ability to emerge from economic crises and impacts their rapid recovery performance.

The report underlines that a country's foreign trade ability enables diversification in its supply and demand resources, thereby reducing the risk of that country's exposure to unique supply and demand shocks. Another critically important topic highlighted in the report is "reshoring."

This can be defined as a shift in which a country that acquires raw materials, intermediate products or final products from abroad, or more accurately, far away points, begins to procure them from within the country and/or the nearby region. The point highlighted by the WTO is that both the U.S. and EU have shifted from a global supply chain dependent on Asia to more local options, especially since the coronavirus pandemic. We can summarize this as the concentration of manufacturing and trade in nearer regions.

The WTO report states that the trend of achieving self-sufficiency in manufacturing industry sub-sectors, which are key for the world's leading economies, is gaining strength. In addition to this, it also warns about the efforts of some countries to completely bring back the "production that went abroad," as it undermines global trade. The report acknowledges that at the end of the first six months of the pandemic, especially among a significant portion of the world's leading countries, moves had already been made to reduce foreign dependency for medical supplies, personal protective equipment, vaccine components and product ingredients, which are critically important for the health industry's fight against the virus.

The report emphasizes that the issue is not limited to medical supplies and health industry products. For example, the U.S.'s goal of becoming a self-sufficient country in steel manufacturing has turned into a priority in terms of its national security. As a matter of fact, it is known that the U.S., the EU and Japan have been negotiating for a long time on China's excess capacity in iron and steel production before the WTO and the Organisation for Economic Co-operation and Development (OECD). Another important warning underlined by the WTO is that if countries restrict trade and excessively promote national sufficiency, this may encourage inefficient investments for national economies and an inefficient production environment, in a way returning us to the world of the 70s and 80s.

The region's reality

For this reason, we see that the Balkans are being rediscovered by the EU in terms of trade and investments. Turkey's increasing economic and commercial relations with Balkan countries, especially in the last five years, and the investments of Turkish entrepreneurs will gain more importance in the coming period. The fact that the pandemic triggered a search for alternatives in the global supply chain means the rediscovery of the Balkans.

Thus, in the coming period, we will witness the acceleration of new production technology investments in the Balkan countries. Turkey's geostrategic and geoeconomic priority and achievements are of great importance when it comes to playing a more vital role in the global supply chain of the Balkans. Extending Turkey's strengthening role in the global logistics and transportation network to the Balkans as a leader and a regional playmaker will also trigger new opportunities with its win-win approach.