{"id":264360,"date":"2016-09-13T12:30:18","date_gmt":"2016-09-13T16:30:18","guid":{"rendered":"https:\/\/policyoptions.irpp.org\/issues\/canadian-trade-policy-in-a-g-zero-world\/"},"modified":"2025-10-07T21:16:32","modified_gmt":"2025-10-08T01:16:32","slug":"canadian-trade-policy-in-a-g-zero-world","status":"publish","type":"issues","link":"https:\/\/policyoptions.irpp.org\/fr\/2016\/09\/canadian-trade-policy-in-a-g-zero-world\/","title":{"rendered":"Canadian trade policy in a G-Zero world"},"content":{"rendered":"

In recent months, there\u2019s been much talk in the United States about ripping up or renegotiating trade deals and in Britain about exiting the European Union and creating new trade deals with the world. In the latest chapter<\/a> of the IRPP\u2019s forthcoming trade volume<\/a>, Robert Wolfe (Queen\u2019s University) analyzes the reality of trade negotiations in a \u201cG-Zero\u201d world where no set of countries (not the G-7 or the G-20) is able or willing to lead on international trade issues.<\/p>\n

In the era of complex global supply chains, trade agreements are more valuable than ever, but the negotiations are long and difficult. The 21st century trade agenda encompasses many tensions involving domestic (\u201cbehind the border\u201d) issues, where it\u2019s more difficult to secure public support.<\/p>\n

As global power has shifted and become more diffuse in recent years \u2014 in large part due to growth in China \u2014 talks at the World Trade Organization (WTO) have largely stalled. Negotiators have shifted their efforts to other venues, thinking they might be able to create new trade rules more easily with smaller groups of like-minded countries. Canada has been active on this front, concluding (but not implementing) two major trade deals: one across the Atlantic (the Comprehensive Economic and Trade Agreement, CETA, with the European Union) and another across the Pacific (the Trans-Pacific Partnership, TPP). In pursuing this ad hoc<\/em> preferential (rather than multilateral) approach, will negotiators ultimately succeed in rewriting effective rules of global trade for the 21st century? Wolfe thinks not, and foresees an eventual return to more constructive trade talks at the WTO.<\/p>\n

Although some \u201cmegaregional\u201d trade deals, such as CETA and the TPP, have been negotiated, they must still overcome significant obstacles if they are to be ratified and then implemented. Other ongoing trade negotiations, such as those between the Americans and the European Union, appear unlikely to reach agreement. Wolfe argues that institutional weaknesses mean that these deals will not be useful stepping stones toward a more coherent global trading system. He points out that the deals have critical shortcomings:<\/p>\n