Isolation amidst globalisation
Known for extending Most Favoured Nation (MFN) status — a founding principle of the WTO — the US has often used this tool to cement trade ties, even with rivals like China, Russia and Belarus. However, MFN status has also been strategically withheld, as in the cases of Cuba and North Korea.
Despite its pivotal global role, recent US developments reveal a surprising turn towards isolationism. As former UK prime minister Tony Blair aptly stated, 'The only exception to globalisation is isolation'. Though full economic data is yet to emerge, global sentiment suggests a US retreat from its once-central position in international trade. The shift likely reflects changes in political leadership in early 2025 and evolving politico-economic priorities.
Signs of this distancing include threats to reduce or withdraw funding from international organisations, engagement in tariff wars and a more selective stance on geopolitical conflicts — all under the banner of 'America First'. With the US accounting for 15-26 per cent of global GDP and around 8 per cent of global trade in 2022, its retreat disrupts global markets and alarms trading partners like India, Canada and China.
Domestically, strict immigration crackdowns reinforce this inward focus. From January to June 2025, over 100,000 suspected illegal immigrants were arrested — an average of 750 per day, double the previous decade's rate — with approximately 200,000 deportations by May. Additionally, visa restrictions have tightened, including bans under security pretexts.
Nevertheless, the world economy remains 3–5.5 times larger than the US economy. To mitigate overdependence, experts urge diversification and the rise of alternative power centres. As the US share in global trade declines, emerging markets strengthen ties.
Recent meetings among China, Japan and South Korea explored ways to bypass US tariffs. Meanwhile, BRICS continues expanding, even contemplating an alternative currency to challenge the US dollar.
While the US recalibrates its global stance, other economies adapt — and in doing so, signal a shift towards a more multipolar world order.
Dr Niranjan Shetty
The writer works with the College of Banking and Financial Studies, Muscat
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18 hours ago
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Isolation amidst globalisation
The US has long stood as a pioneer of liberalisation, privatisation and globalisation (LPG), spearheading major policy shifts and contributing significantly to global institutions like the UN, WTO and WHO. Known for extending Most Favoured Nation (MFN) status — a founding principle of the WTO — the US has often used this tool to cement trade ties, even with rivals like China, Russia and Belarus. However, MFN status has also been strategically withheld, as in the cases of Cuba and North Korea. Despite its pivotal global role, recent US developments reveal a surprising turn towards isolationism. As former UK prime minister Tony Blair aptly stated, 'The only exception to globalisation is isolation'. Though full economic data is yet to emerge, global sentiment suggests a US retreat from its once-central position in international trade. The shift likely reflects changes in political leadership in early 2025 and evolving politico-economic priorities. Signs of this distancing include threats to reduce or withdraw funding from international organisations, engagement in tariff wars and a more selective stance on geopolitical conflicts — all under the banner of 'America First'. With the US accounting for 15-26 per cent of global GDP and around 8 per cent of global trade in 2022, its retreat disrupts global markets and alarms trading partners like India, Canada and China. Domestically, strict immigration crackdowns reinforce this inward focus. From January to June 2025, over 100,000 suspected illegal immigrants were arrested — an average of 750 per day, double the previous decade's rate — with approximately 200,000 deportations by May. Additionally, visa restrictions have tightened, including bans under security pretexts. Nevertheless, the world economy remains 3–5.5 times larger than the US economy. To mitigate overdependence, experts urge diversification and the rise of alternative power centres. As the US share in global trade declines, emerging markets strengthen ties. Recent meetings among China, Japan and South Korea explored ways to bypass US tariffs. Meanwhile, BRICS continues expanding, even contemplating an alternative currency to challenge the US dollar. While the US recalibrates its global stance, other economies adapt — and in doing so, signal a shift towards a more multipolar world order. Dr Niranjan Shetty The writer works with the College of Banking and Financial Studies, Muscat
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