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Democratic governance, liberal values, and the open trading regime are facing interconnected existential challenges. For most of the post-WWII period, they were “legs to the same stool.” Today, the connections among the three have frayed, and this has implications for the future of the liberal international economic order. While the trade regime successfully incorporated smaller autocratic states, the rise of China and increasing tension among signatories to the WTO has challenged the rule-based trading system. This essay argues that even with these divisions among the memberships, all trading nations, including China, need the General Agreement on Tariffs and Trade (GATT)/WTO. Trade requires market predictability; exporters and their home governments require some means to adjudicate conflict. The GATT/WTO remains the best, and perhaps the only, organization that can facilitate such coordination and finesse the changing nature of the international system to assure an open world economy.
Democratic governance, liberal values, and the open trading regime are facing interconnected existential challenges. For most of the post-WWII period, they were “legs to the same stool.” Today, the connections among the three have frayed, and this has implications for the future of the liberal international economic order. While the trade regime successfully incorporated smaller autocratic states, the rise of China and increasing tension among signatories to the WTO has challenged the rule-based trading system. This essay argues that even with these divisions among the memberships, all trading nations, including China, need the General Agreement on Tariffs and Trade (GATT)/WTO. Trade requires market predictability; exporters and their home governments require some means to adjudicate conflict. The GATT/WTO remains the best, and perhaps the only, organization that can facilitate such coordination and finesse the changing nature of the international system to assure an open world economy.
Ensuring exporters can access finance is critical for governments as they look to encourage trade and drive economic growth. However, firms face challenges in securing export finance and trade credit insurance as geopolitical and trade megatrends lead to increased political, market and credit risks. In a dynamic global landscape, the role of export credit agencies (ECAs) has never been more important. Based on the ‘Futures Triangle’ analytical framework and drawing on qualitative data from 35 semi‐structured interviews and expert discussions using thematic analysis, this research assesses the implications of key megatrends for ECAs. It presents new insights into the impact on strategies, products and operations: The evolution of mandates towards a ‘growth promoter’ in a ‘whole‐of‐government’ approach, the necessity to introduce new products and the need to balance multiple priorities such as export growth, support for small and medium‐sized enterprises (SMEs), inclusive trade, climate action and impact on developing markets. The recommendations are intended to help policymakers and public finance practitioners understand and respond strategically to global changes.
After the end of the Second World War, the second half of the twentieth century brought in, one the one hand, the establishment of GATT provisions in 1947 and the legal texts implemented during its negotiation rounds as a regulatory framework, and on the other hand, the creation in 1995 of the WTO as the central normative entity for international trade. In this way, the states' economic opening strategy focuses on reducing rampant protectionism, usually reflected in tariff barriers and non-tariff barriers as foreign trade policy. Therefore, the GATT-WTO paradigm enhances trade flows between countries as freely as possible, contributing to economic growth and world development. Likewise, the GATT provisions endorsed the creation of many different typologies of trade agreements legitimated by its article XXIV and the Enabling Clause of the Tokyo Round. In this sense, the international trade agreements had a notable growth since the WTO establishment until the Great Recession in 2008. However, it is paradoxical that this approval from the GATT-WTO paradigm regarding the signing of these international trade agreements strengthen regionalism as the easy path, leaving out the multilateralism philosophy of the WTO, where precisely member governments try to solve the trade disputes through its legal framework but not through specific law from trade agreements. In this manner, this research carries out a descriptive study where trade agreements are marked adopting the sociological research scientific approach where a factual question is proposed to analyze the phenomenon. Hence, this paper suggests that the current legal framework in the GATT-WTO paradigm is not dynamic nowadays, pushing countries to sign international trade agreements for promoting commercial exchange and create new rules that, at the multilateral level, the GATT-WTO do not develop for political will absence and particular interests of some full members. A scenario that merely seems to undermine the WTO pushing countries to make parallel rules apart from the traditional multilateralism model giving a more prominent role to regionalism.
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