New research from the University of Sydney shows that international trade is widening the gap between rich and poor countries, making it harder to achieve the United Nations Sustainable Development Goals (SDGs).
The study, which spans nearly three decades, reveals that trade practices by wealthy nations are increasing economic and social inequalities between the Global North and the Global South. This undermines global efforts to meet the goals set for 2030 under the UN’s development agenda.
A mixed picture
The research presents a mixed picture of international trade. On one hand, trade can boost economic growth and reduce poverty. On the other, it often leads to environmental damage, resource depletion, and social inequality, especially in poorer countries. The study highlights a troubling trend: high-income nations often outsource the harmful environmental and social impacts of production to less affluent countries, placing the burden on those least able to handle it.
“Our findings indicate that the Global North’s trade practices are not just an unintended consequence of globalization—they are actively widening the gap between countries that benefit from trade and those that suffer from it,” the researchers note.
This growing divide is not just economic; it also worsens the social and environmental challenges faced by the Global South. The study, which looks at 12 SDGs from 1990 to 2018, shows that trade is particularly harmful to goals related to climate action, sustainable cities, and zero hunger. However, there are some positive effects, such as progress in decent work and economic growth, as well as poverty reduction, though these gains are unevenly spread.
Thinking again
The researchers call for a reevaluation of trade agreements to consider these global spillover effects and to strengthen international policies that can reverse the negative trends. They argue that the current focus of the SDG framework on national targets misses the bigger picture: in a globalized world, consumption in one country can have serious consequences for people in another.
“To achieve the UN Sustainable Development Goals, we need progress in all nations,” the researchers conclude. “This means understanding how global supply chains affect development and ensuring that trade becomes a tool for equity, not division.”
As the 2030 deadline approaches, this study reminds us of our interconnected economies and the shared responsibilities that come with them. Without addressing the negative impacts of trade, the vision of a more equitable and sustainable world could remain out of reach.
