The Fourth Industrial Revolution, European Union competitiveness and future of international trade

Abstract

The article is devoted to analysis of the background and trade aspects of the fourth industrial revolution, a technological component of the countries’ competitiveness, current practices used by countries, in particular European countries, to maintain their competitive advantages, as well as consequences for the international trading system. The aim of the article is to study recent measures applied by European countries to preserve their competitive positions in the markets of high-tech goods and services within the framework of the fourth industrial revolution, and to identify the consequences and possible growth vectors of the multilateral trading system. Application of statistical analysis and case study methods used for an exploration the legal framework ensured that the objective was achieved. The article provides an overview of the trade aspects of the fourth industrial revolution, current changes in the production of goods and services, and in the patterns of trade in such goods and services, which emerged because of widespread digitalization and the emergence of new technologies and directly impacted countries’ competitiveness. An analysis of the EU’s legal and program initiatives, which is aimed at limiting technology transfer and actively developing its high-tech industries through large-scale subsidies, mostly under a pretext of achieving climate goals, provides insight into the current direction of the EU’s trade policy. Based on the results obtained during the study of restrictive measures introduced by European countries, as well as the current situation in international trade caused by the fourth industrial revolution, the authors make a forecast of possible trajectory of development of the multilateral trading system and suggest directions for changing the rules governing international trade that have been in place for more than 70 years.