Download This PaperThe Shifting Sands of Free Trade in a Less Than Liberal Order of Global Economy
Committee for Economic Development of Australia (CEDA), Supporting Paper in the Series Global shifts and the Impact on Australia for the 2017 CEDA’s Research Report, Australia’s Place in the World
2 Pages Posted: 7 Nov 2018
Date Written: November 12, 2017
Abstract
Earlier this year the Trump administration published the President's 2017 Trade Policy Agenda, providing some official guidance as to the shape of its trade policy. In short (and as feared): it’s going to wage a fierce attack on the multilateral trading system by reneging the WTO’s jurisdiction on trade disputes and by refocusing the US trade strategy on bilateral relations in order to bring about trade surpluses.
By walking down that path, President Trump stands to undermine the post-World War II US-led global economic order, which has traditionally used free trade as a non-zero-sum instrument for geopolitical advantage and national security. Trump is set to reverse the equation by promising never to turn a blind eye to unfair trade practices that disadvantage American workers and businesses in global markets. Trade becomes a zero-sum game to leverage Washington’s existing geopolitical supremacy to deliver exclusive trade advantages.
Keywords: International Trade Policy, Liberal Order, Global Economy, Australia, USA
JEL Classification: F01, F02, F1, F5, F6
Suggested Citation: Suggested Citation