New eBook: Trade war: The clash of economic systems threatening global prosperity
This new eBook, edited by Dr Meredith Crowley of the University of Cambridge and CEPR constructs a narrative of the US-China Trade War as the outgrowth of long-brewing tensions in the multilateral trading system. Multiple factors – the unprecedented economic growth of an economy operating outside the traditional Western capitalist model, new structures of production with supply chains spanning the globe, geographically concentrated job losses within the US, and a multilateral trading system that has stagnated and failed to keep pace with changes in the world economy – have all contributed to the current mess. The problems extend well beyond the highly visible US-China conflict to the wider community of countries struggling with the interface between Chinese state capitalism and their own capitalist systems, the failure of the WTO to make progress with multilateral negotiations over almost anything, and a dispute resolution system that has veered off track.
- Beginning with China’s accession to the World Trade Organization (WTO), the book explores the effects of the country’s global integration on US manufacturing workers, the system of WTO dispute settlement, and the implications of China’s rise as a global power.
- Assessments of the economic costs of trade wars follow; contributions quantify which countries lose the most, discuss how firms respond to changes in import tariffs, and explain how the costs of the trade war propagate through global value chains (GVCs).
- The closing chapters investigate the clash of economic systems at the heart of the US-China quarrel, the quiet growth of other measures restricting market access, the unresolved question of how to limit subsidies, and the rise in uncertainty about future trade policy.