Five Questions to Analyze Tendencies of International Trade Regulation: Multilateralism, Regionalism and Protectionism

Abstract

The present article is the result of research on current tendencies of international trade regulation. Research was based on an inter-disciplinary method where approaches of political economy and international relations were used to analyze the major challenges of multilateral trade regulation in the World Trade Organization. The China effect, the lack of political support of the United States during the administration of expresident Donald Trump, as well as internal failures of the system are all considered as possible causes of the current crisis of the World Trade Organization. Nevertheless, the clash of the Chinese state capitalist system with the multilateral trading system based on market economies is considered as a major factor of the current crisis. The Trade War is a manifestation of this crisis. Current trade regionalization is discussed as another dangerous driving force present in the world trading system. Solution based on perspectives of transnational law is also proposed to avoid the development of patchwork globalization.