Developments in US Trade Policy Amid the Shifting Dynamics of World Trade

Abstract

Today, world trade stands at a juncture. The proliferation of unconventional, unilateral trade policies calls into question the fundamental legitimacy of the World Trade Organization (WTO). To date, the global trading system evolved alongside a plethora of exogenous factors, such as the US-China competition. The political realities came to reveal the inadequacies of the existing trading regime to receive unique non-market economies (NMEs) like China in the world market. To better withstand the changes in world trade, the US resorted to unconventional, unilateral trade tactics. But how exactly did we get here? This study argues that the root cause can be found in the developments in US trade policy under each US presidency. The study’s findings demonstrate that the overarching goal of US trade policy has remained remarkably consistent across different presidencies in terms of countering the rise of China. Along the way, the incumbent president’s different priorities and political ideals, and the sustained impact of China’s accession to the WTO, induce profound changes in US-China relations and, at large, the world trading system. In short, this article aims to provide a policy-wise explanation to the current conundrum in world trade by following the developments in US trade policy since China’s accession to the WTO.