RECENT CHALLENGES TO THE INTERNATIONAL TRADE REGIME AND POLICY RECOMMENDATIONS (International Affairs 9-10/2023 №101 102)

Abstract:

Since the end of the Second World War, the WTO and its predecessor, GATT, have contributed greatly to promoting global trade. Regional Trade Agreements are mainly functioning within the framework of the WTO. Since 2017, however, the international trade regime has faced serious challenges. Major trading countries are increasingly resorting to unilateral trade actions which are prohibited under WTO rules to deal with “unfair practices” by other trading partners. The strategic competition between the two largest economies in the world has been significantly affecting their respective trade policies. In order to understand the current challenges to the international trade regime and how the regime could develop in the future, it would be useful to consider US trade policy because it has played a leadership role in trade liberalization in the post-World War II era.

Considering the current situation, it is also necessary for WTO members and those countries applying for WTO membership to consider how they can pursue their trade policy to promote trade and economic growth given the limits of the current international trade framework. More active public participation in developing trade agreements, more active use of trade agreements by businesses, and strengthened national expertise in international trade law could be policy options to deal with today’s challenges and transitions.

Keywords: new international trade regime, trade war, WTO, RTA, FTA, US trade policy.