b'INTERNATIONAL TRADE & RELATIONSTHE FINER DETAILSOF FRIENDSHORINGBy Warren HeeleyWill this new trend gain acceptance? And if so, how will it impact relocation and mobility?F riendshoring or allyshoring, a term first used in the U.S.commodities for security purposes. Friendshoring is a partner in 2021, is defined by Collins dictionary as the activityof repatriating production that recognizes all vital commodities of a country redirecting its supply chains away fromcannot be produced domestically and that alliances with countries nations pursuing destructive or belligerent policies tothat have shared values need to be pursued.more stable and peaceable nations. Friendshoring is essentially a concept derived from onshoring andThis will not be easy. Repatriating production either to a home nearshoring, but one that limits supply chain networks to alliescountry or to countries with shared values likely means more and friendly countries. In other words, its when geopolitics areexpensive products. Questions also arise about how shared values taken into account in economic business decisions.are determined. Critics see this trend impacting global free and fair trade. The World Trade Organization predicts world GDP Friendshoring flips on its head the decades of progress oncould drop up to five per cent if the world splits into trading blocs global trade and offshoring, says Todd Hirsch, owner of Toddbetween east and west.Hirsch Consulting Inc. Though events such as 9-11 and theAlso, will friendshoring be limited to products that directly affect 2008 financial crisis caused changes in the global trade arena,the security of a country? Or will it be used as a camouflage for most nations remained committed to the process. Friendshoringrestricting global trade?could create a new era in trade relations driven by geopolitics. This includes the production of vital products being repatriatedRETROGRESSIVE STEP?and agreements established with countries that are not militarilyFor James Egan, senior counsel, global immigration and people aggressive and that respect the need for stable supply chains.advisory services at EY Law, the friendshoring trend doesnt bode well. It is sad and disappointing to see countries considering Friendshoring is, to a large degree, a product of the COVID-19a retrogressive step back from globalized trade towards friend-pandemic. Countries concerns about vital commodity securityshoring, he says. The re-emergence of a cold war attitude piqued when the supply chain started failing in 2020 and expertstowards trade, where politics is placed ahead of supply chain effi-began predicting countries would domesticate production of keyciencies and prosperity, is disconcerting. 24PERSPECTIVES Spring 2023'