The Evolution of Global Value Chains and Their Economic Implications

Over the past two years, we have seen a resurgence in protectionist sentiment. New trade barriers threaten the international trade system, which is far more heavily concentrated in global value chains (GVC) than before, with the various stages of goods and services production fragmented among a number of countries. This broader global integration of production chains therefore requires greater international cooperation, particularly for economies involved in GVCs, such as Canada.