{"id":275423,"date":"2023-12-28T19:28:43","date_gmt":"2023-12-28T13:58:43","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=275423"},"modified":"2023-12-28T19:28:43","modified_gmt":"2023-12-28T13:58:43","slug":"on-shift-in-global-trade-policy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/on-shift-in-global-trade-policy\/","title":{"rendered":"On Shift in Global Trade Policy"},"content":{"rendered":"

Source<\/strong>: The post on shift in global trade policy has been created on the article \u201cGlobal trade policy: A year-end stocktaking\u201d<\/strong> published in \u201cBusiness Standard\u201d<\/strong> on 28th December 2023.<\/p>\n

UPSC Syllabus Topic:<\/strong> GS paper 2- International Relations-Bilateral, regional and global groupings and agreements involving India and\/or affecting India’s interests.<\/p>\n

News<\/strong>: The article discusses how recent trade policies, particularly in the US and EU, are moving away from global trade rules and becoming more protectionist. This shift is leading to a more fragmented and contentious global trade environment.<\/p>\n

What is changing in global trade policy?<\/strong><\/h2>\n

Unilateral Measures:<\/strong> The US and EU are adopting more unilateral trade policies, as evidenced by the US’s Inflation Reduction Act<\/strong> and the EU’s Carbon Border Adjustment Mechanism<\/strong>. These measures, like the US’s local content rules in electric vehicle manufacturing<\/strong> and the EU extending its Emission Trading System,<\/strong> are contrary to WTO rules and favor certain regions over others.<\/p>\n

Rising Protectionist Actions:<\/strong> Nations are following the US and EU’s lead with their own protective measures. For instance, the Netherlands and Japan’s restrictions in the semiconductor industry are part of a broader trend of increasing trade restrictions aimed at protecting domestic industries.<\/p>\n

Contradictory US Policies:<\/strong> The US has the highest number of trade and industrial policy interventions between 2017-23, contradicting its stated commitment to a rules-based order. This includes actions against China and its own protectionist measures, reflecting a larger trend of contradiction in its trade policies.<\/p>\n

For more information on US’s Inflation Reduction Act read here<\/a><\/p>\n

For more information on EU’s Carbon Border Adjustment Mechanism read here<\/a><\/p>\n

What are the implications of these changes?<\/strong><\/h2>\n

Undermining WTO Principles:<\/strong> Unilateral measures like the Inflation Reduction Act and the Carbon Border Adjustment Mechanism challenge WTO’s rules-based order, undermining principles of non-discrimination and fair competition.<\/p>\n

Weakening of Multilateral Dispute Settlement:<\/strong> The US’s reluctance to engage with the WTO’s dispute resolution mechanisms signals a move towards more uncertain and bilateral dispute settlements. This move threatens the predictability and stability provided by the multilateral system.<\/p>\n

What should be done?<\/strong><\/h2>\n

Strengthen WTO Commitment:<\/strong> Reinforce adherence to World Trade Organization rules and principles to ensure a fair and stable global trading system.<\/p>\n

Support Positive Trade Developments:<\/strong> Recognize and build upon the growth and resilience of global trade, as evidenced by the expansion of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)<\/strong> and the full effectuation of the Regional Comprehensive Economic Partnership (RCEP).<\/strong><\/p>\n

Encourage Multilateral Cooperation:<\/strong> Utilize the positive momentum from these regional blocks to foster a more inclusive and rules-based global trade environment.<\/p>\n

Enhance Transparency:<\/strong> Developed countries should lead by example, ensuring that any new trade measures are transparent and in line with international norms.<\/p>\n

For more information on CPTPP read here<\/a><\/p>\n

For more information on RCEP read here<\/a><\/p>\n

Question for practice:<\/strong><\/p>\n

Discuss the implications of recent changes in global trade policy, particularly the shift towards unilateral measures and protectionism.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post on shift in global trade policy has been created on the article \u201cGlobal trade policy: A year-end stocktaking\u201d published in \u201cBusiness Standard\u201d on 28th December 2023. UPSC Syllabus Topic: GS paper 2- International Relations-Bilateral, regional and global groupings and agreements involving India and\/or affecting India’s interests. News: The article discusses how recent… Continue reading On Shift in Global Trade Policy<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,212,239],"class_list":["post-275423","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","tag-international-relations","entry"],"jetpack_featured_media_url":"","views":{"total":1,"cached_at":"","cached_date":1703798341},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/275423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=275423"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/275423\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=275423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=275423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=275423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}