a revival of reforms at the WTO to address dispute resolution, tariff-setting rules and digital trade issues. With US-China Geoeconomic confrontation at the core of a fragmenting world, more opportunities will open up for rising powers, such as India or the Gulf countries, to fill the void and propose multilateral alternatives to the current global political economic order. These countries can also benefit by acting as a bridge between West and East, even though they too will suffer many of the negative impacts of the fragmenting environment. Smaller countries will face increasing pressure to align with the West or the East in their trade relationships. B. Develop strategic relationships Governments could consider further prioritizing efforts to develop strategic regional or bilateral ties with countries that offer complementarity in terms of sectoral strengths, natural resource endowments and skills. “Deep” regional trade agreements – outside the WTO but consistent with WTO requirements – and WTO-based plurilateral44 or “minilateral” agreements can be considered (Figure 1.21).45 Even at these levels, multistakeholder dialogue needs to be deepened to reinforce the message that well- designed deepening of trade can lead to mutually beneficial economic and social outcomes. C. Strengthen domestic economic resilience In an environment where trade becomes more costly and cumbersome, emphasis needs to be placed on policies that strengthen the domestic economy, such as financial sector development or investment in education, health and infrastructure. On the supply side, developing greater self-sufficiency in key strategic sectors such as Energy, Agriculture, and Defense will increasingly become an important aspect of resilience at the national level. Share of respondents (%)Geoeconomic confrontation (sanctions, tariffs, investment screening) State-based armed conﬂict (proxy, civil wars, coups, terrorism, etc.) Biological, chemical, or nuclear weapons or hazards Concentration of strategic resources (and technologies) Disruptions to a systemically important supply chainInvoluntary migration or displacement Cyber espionage and warfare Intrastate violence (riots, mass shootings, gang violence, etc.) Disruptions to critical infrastructure Crime and illicit economic activity (incl. cyber)Top risks that can be addressed by “minilateral” treaties and agreements FIGURE 1.21 Source World Economic Forum Global Risks Perception Survey 2024-2025."Which approach(es) do you expect to have the most potential for driving action on risk reduction and preparedness over the next 10 years?" Risk categories Economic Environmental Geopolitical Societal Technological Global Risks Report 2025 33