Abstract

Trade policy among the G20 has emerged as one of the challenges the group faces during the last decade after the 2008 global financial crisis. This paper aims at analyzing the current trade disputes between China and the United States and the efforts the G20 has taken to settle these disputes. The fundamental questions this study attempts to answer are as follows: (1) what the US–China trade dispute means for the world trading system? (2) what the G20 can do to prevent destructive trade wars? We confront this view by critically examining a large body of evidence on the effects of trade policy on economically important outcomes. We begin with a discussion of the role of G20 in stabilizing world economy. We show the G20’s recent economic and trade development challenges and measurements of trade policy and identification of its causal effects. We present the trade balance between the United States and China. We also illustrate the efforts made by the G20 in promoting the development of China–US trade cooperation. Data were collected from different sources. Data are collected from the World Bank, the World Trade Organization (WTO) publications, and the G20 summits’ reports. The results show that the United States has a trade deficit with China, and the global growth would be notably curtailed as investment and consumer spending fall back. The G20 should focus on supporting the WTO, being upfront about the mixed effects of trade and investment, and improving G20 measures to tackle protectionism.

Highlights

  • The study of trade policy is a matter of current interest for policy makers, regulators, and researchers; research on trade restriction among nations requires greater rigor and greater depth

  • The questions that this study attempts to answer are follows: (1) what the US–China trade dispute means for the world trading system? (2) what the G20 can do to prevent destructive trade wars? This study is organized into five sections to provide a comprehensive picture of trade disputes between China and the United States

  • Investigate the key factors that contribute to the policies that are most powerful in tackling the protectionism, trade war, and retaliation

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Summary

INTRODUCTION

The study of trade policy is a matter of current interest for policy makers, regulators, and researchers; research on trade restriction among nations requires greater rigor and greater depth. We argue that these studies are narrowly focused and limited; research on evaluation and the trade agreement should consider whether the United States would renegotiate or withdraw from existing arrangements, including the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA), and to impose new tariffs on imports, from China and Mexico. Against this background, the questions that this study attempts to answer are follows: (1) what the US–China trade dispute means for the world trading system? The part will discuss the recent economic and trade development among G20 countries

G20’S RECENT ECONOMIC AND TRADE DEVELOPMENT
AN OVERVIEW OF CHINA–US TRADE RELATIONS
G20 TRADE POLICY AND WTO
Findings
CONCLUSION
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