2.1. Unmitigated Growth in Global Trade
Looking at the evolution of international trade since the early 1990s underlines an
unmitigated growth with short decline periods, such as during the Asian Financial Crisis of
1997 and the recession of 2000-2001. A convergence of factors supported this substantial
growth. First, integration processes, namely various forms of regional and global trade
agreements, promoted trade as regulatory regimes became better harmonized (e.g. tariffs).
Examples include the accession of China to the World Trade Organization in 2001 and the
creation of the European internal market in 1993. Second, production systems became more
fragmented as it became easier to seek global comparative advantages in terms of labor and
accessibility to markets notably through globally scattered production sites and global sourcing
strategies. Third, international transportation systems, maritime shipping and port terminals
saw a substantial development in capacity, connectivity and reliability. Fourth, the transactional
efficiency of international trade was improved with ever more sophisticated and performing
telecommunications and information technologies as well as a greater availability of capital to
finance international trade transactions.