Liberal International Order and Global Trade Growth

Abstract

The relationship between liberal international order and global trade has evolved over the years. International trade sectors that emerged in both the 19th and the 20th centuries reflect the interest of the hegemony. The agreements that lowered tariff barriers between nations established global orders that contain strong mercantilist and protectionist practices. Even so, the international order after World War II have been much more liberal than is usually assumed and provided the basis of expanding global trade in 20th century. Although the rise of Asian nations, Japan and China in particular, has contributed to the growth of the global trade, they have not yet made real drastic changes in liberal international order. It is to be seen how Japan’s initiatives of TPP renewal and Chinese OBOR efforts play out in establishing new international order that defines the patterns of global trade.

China and other rising states have growing opportunities to shape the rules and institutions of the existing system. But it is very unlikely that they will do so as part of a “power transition” moment, that is, a dramatic moment when the old order is overturned and rising states step forward to build a new one. ….the rising states are already deeply embedded in the existing modern international order. Their “rise” has been made possible by the openness and loosely rule-based character of the post-war system. (G. John Ikenberry on “Why the Liberal World Order Will Survive”).