THE FRAGMENTATION OF GLOBAL TRADE: FROM PROTECTIONISM TO GATED GLOBALIZATION

Abstract

The fragmentation of global trade, evolving from traditional protectionism to the modern paradigm of gated globalization, reflects a strategic shift by nations toward prioritizing sovereignty and security over multilateral cooperation. This paper examines the historical roots, theoretical underpinnings, and contemporary drivers geopolitical rivalry, economic insecurity, and social discontent behind this transformation. Through historical analysis and case studies of the U.S., EU, China, and emerging economies, the study reveals how policies such as tariffs, export controls, and regulatory fragmentation disrupt supply chains, inflate costs, and exacerbate inequality. Key findings indicate that while gated globalization addresses vulnerabilities like supply chain fragility, it risks entrenching economic divides and undermining global governance institutions. The paper underscores the urgency of balancing strategic autonomy with inclusive frameworks to preserve the benefits of economic interdependence. Recommendations include revitalizing multilateral institutions, fostering equitable trade agreements, and supporting small businesses to mitigate fragmentation’s adverse effects. Ultimately, the research highlights the need for cooperative strategies to navigate the dual challenges of de-globalization and sustainable growth.