Global supply chains have suffered significant disruptions in the last few years. The commercial war between the US and China, the global pandemic, and the current Russian invasion of Ukraine have interrupted the supply of some goods and have caused the prices of primary goods to increase considerably.
This topic was brought up by Prof. Fabio Marazzi, Senior Managing Partner of BMV, and by Andrea Noris, Senior Associate of BMV, in an article they wrote for ISPI – Institute for the Studies of International Politics – called “Friendshoring: obiettivo filiere amiche”.
The article talks about how the return to international relations similar to those existing during the cold war could support nearshoring and probably encourage friendshoring. This term relates to the relocation of production from non-allied countries (those that don’t share the “western” values) to allied countries (those with a similar international relations approach).
Regardless of the policies created to encourage reshoring and friendshoring, the European Union and the United States are looking to increase their national production, especially in the agricultural sector. The goals seem ambitious, but the recent global disruptions, such as the Ukraine-Russia crisis, have shown the need to substitute a portion of the imports with local production.
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For further information please contact Paula Vega at p.vega@bmvinternational.com
