Free Trade System and Its Challenges
Abstract
This article examines the major challenges facing the free trade system. The research findings indicate that the global free trade regime currently faces several significant obstacles; regional conflicts, existing political crises and related economic sanctions, the emergence of new trade patterns such as electronic commerce, global supply chains, and the outdated mechanisms for dispute resolution within the WTO are among the key challenges of this system. However, extreme nationalism, exemplified by Donald Trump, constitutes the greatest threat to the free trade system. By accusing others, especially China, of unfair practices and completely disregarding the principles governing the international economic legal framework, he acts accordingly. His retaliatory tariffs have nullified the achievements of the seventy-year-old GATT and WTO. Failure to seriously address these challenges could lead to decreased investments, trade contraction, global economic recession, and ultimately the collapse of the free trade system. Therefore, structural reforms, strengthening dispute resolution mechanisms, and aligning national policies with international principles are essential solutions, rather than neglect, extreme nationalism, retaliatory tariffs, and similar measures.
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DOI: http://dx.doi.org/10.18415/ijmmu.v12i10.7174
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