Trade Compliance for Leadership Navigating a Shifting Global Landscape 2025

However, as multilateral negotiations under the WTO eventually slowed, countries turned to bilateral and regional free trade agreements (FTAs) to advance their trade agendas. FTAs surged from a few dozen in the early 1990s to more than 300 FTAs notified to the WTO today. Early agreements focused primarily on tariff reductions and market access. Modern FTAs expanded to include provisions on services, intellectual property, investment, labour standards and regulatory cooperation. FTA growth introduced both opportunities and complexity for trade compliance. Preferential tariff rates under FTAs could reduce costs, but only if companies were able to demonstrate compliance with rules of origin. Although some companies chose not to avail themselves of the preferences, trade professionals moved to tracking origin documentation, supplier declarations and regional content thresholds to ensure that the benefits of preferential tariff rates could be claimed. At this point, trade professionals also started to take on strategic roles, advising on cost optimization and supply chain planning. At the same time, a great deal of trade professionals’ time and resources remained focused on traditional compliance, dealing with audits of border authorities and inconsistent border practices. The function’s operational origins also meant that it often remained housed within logistics or supply chain departments. Many companies chose to outsource trade compliance responsibilities to customs brokers or third-party logistics providers, integrating compliance into broader logistics services such as warehousing or transportation. The past 10 years have changed the trade landscape again. Major developments include: –The rise of trade tensions between nations has disrupted global supply chains, while changes to the membership of the EU has resulted in new border procedures. –The COVID-19 pandemic caused global supply chain disruptions as lockdowns and port closures led to severe delays and shortages. Supply chains shifted towards resilience and nearshoring. –A new wave of sanctions and export controls has arisen because of military conflicts and at the same time there is an expansion of export controls on dual-use technologies – especially for semiconductors – in response to strategic competition between nations. –Supply chain sustainability regulations, such as the EU’s CBAM, the EUDR or the US UFLPA, have brought new types of obligations. –New technology and digitalization play an increasingly vital role for international trade and trade compliance, with governments demanding more data and real-time reporting. –Economic policy developments such as the large number of tariffs in 2025 have further reshaped trade considerations. –The increase in bilateral deals has raised compliance efforts. Even as the WTO estimates that 74% of global trade takes place under MFN terms,2 bilateral arrangements may motivate further demonstration of product origin, and use of preferential terms. The degree and nature of the impact of these changes will vary depending on a company’s industry, supply chain structure and geographic footprint. A company’s exposure to volatile tariffs, sustainability regulations or export controls is not uniform – it is shaped by where it sources, manufactures and ships its products. Trade Compliance for Leadership: Navigating a Shifting Global Landscape 9