This chapter assesses the global trade system. It begins by looking at the debate over free trade and protectionism. The chapter explores the evolution of the multilateral trade system, with particular emphasis on the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), highlighting the centrality of trade liberalization and non-discrimination in contemporary trade relations. It then considers the debates surrounding the relationship between trade and development, particularly around how multilateral trade rules reflect unequal power relations, and the social consequences of liberalized trade. The chapter also reflects on the recent backlash against neoliberal trade and the ostensible turn towards protectionism in some parts of the world. Finally, it highlights the gendered nature of trade and how it affects gender equality.
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6. Trade
Erin Hannah and James Scott
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12. China and the Global Political Economy
Scott James
The global political economy is undergoing a moment of profound change and upheaval, precipitated by the recentering of the global economy back toward Asia, where it had traditionally been until the shock of colonialism and European industrialization. China, in particular through decades of sustained, rapid economic growth and domination of global manufacturing capacity, has greatly increased its influence over international affairs. This work explores some of the challenges generated by China and the other ‘rising powers’, including increased military and diplomatic confrontation, the erosion of core norms that underpin key institutions of economic governance and the creation of new institutions that may undermine the existing framework of global economic governance. The work reflects on the future of global political economy and questions the basis of the existing set of approaches, norms and institutions of global governance, whom they were created to benefit, and the extent of their claims to legitimacy.
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5. The Evolution of the Global Trade Regime
Silke Trommer
This chapter details the history, politics, and recent trends and challenges of the multilateral trade system. The twentieth century witnessed a remarkable emergence of international institutions, and nowhere was their impact greater than in international trade. Following decades of depression and war, a global trading regime was initiated with the creation of the General Agreement on Tariffs and Trade (GATT) in 1947, which expanded steadily in both scope and membership through the twentieth century and culminated in the establishment of the World Trade Organization (WTO) in 1995. Underpinned by the philosophy that open markets and non-discriminatory trade policies promote the prosperity of all countries, and issued with a powerful dispute settlement mechanism, the WTO has been hailed as the most prominent example of cooperation between countries. At the same time, however, the WTO has been subject to internal and external criticism and now faces a number of difficulties.
