What: International cooperation is being transformed through four key imperatives: rebuilding trust, modernising institutions, creating new impact pathways, and engaging businesses.

Why it is important: The retail industry faces unprecedented challenges requiring coordinated international action, from AI regulation to supply chain resilience.

International cooperation is undergoing a fundamental transformation to address modern challenges, with institutions focusing on four key imperatives. The first involves rebuilding trust through transparent decision-making and balanced representation, particularly important for emerging markets and developing economies. Secondly, institutions are modernizing their operations by streamlining processes, reducing bureaucracy, and adopting private sector best practices. The third imperative focuses on building new pathways to impact, starting with smaller, committed coalitions before scaling to broader agreements. Finally, the private sector is being engaged as a genuine partner rather than just a funding source, leveraging their expertise in areas like AI and sustainability. This evolution is particularly evident in successful initiatives like the Water Resilience Coalition, which has launched 21 collective action projects across 15 regions. The transformation reflects a growing recognition that today's challenges, from climate change to cybersecurity, require deeper international cooperation than ever before.

IADS Notes: Recent developments underscore the critical nature of this transformation for retail. In March 2025, retailers faced unprecedented complexity in tariff management, with BCG projecting USD 640 billion in additional import costs. This has driven innovative responses, as seen in February 2025 when major retailers began implementing AI-powered analytics for supply chain optimisation. The impact extends beyond operations, with January 2025 data showing 87% of AI adopters achieving significant revenue increases. However, the challenges remain substantial, as evidenced by April 2025 reports of Asian e-commerce platforms redirecting massive shipment volumes toward Europe amid regulatory pressures.

The future of international cooperation in a fragmented world