First, the increase in trade volumes relative to GDP is a process that was already under way in the 1970s and 1980s. However, inflation rates during this period were substantially higher than today. Second, the effects of increased trade with labour-abundant economies will affect only relative prices.
It is a well-known fact that, for the aggregate price level and its rate of change, relative price effects have no ultimate influence. It is monetary policy that, over the medium to long term, pins down trend inflation.