R Street Institute

Policy Studies Federal Government Affairs

Crisis and Opportunity: The Multilateral Trading System at a Crossroads

by Clark Packard
March 18, 2019
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Key Points

The WTO is facing a serious crisis driven by a couple major problems.
China’s unique brand of state-directed capitalism/mercantilism poses significant long term challenges for the rules-based international trading system.
Though China poses serious long term concerns, the Trump administration multidimensional attacks on the Geneva-based institution. It has levied tariffs outside the normal channels and it continues to cripple the WTO’s adjudicatory functions.

“For 80 years, the United States has led the global economic order. Far from a victim of this system, the United States is a primary beneficiary. We have shaped it according to our interests and the results have been overwhelmingly positive. While the rules-based trading system faces enormous challenges, the WTO is an indispensable player in an increasingly globalized world. As an architect and defender of the WTO, the United States bears a special responsibility to protect its system.”

Press release: R Street Policy Study 167: Crisis and Opportunity: The Multilateral Trading System at a Crossroads

Image credit: dinkaspell

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