Evolution of the International Trading System

Abstract

The study demonstrates the evolution of the international trading system from the beginning of the origin of philosophical concepts to its current state. For this purpose, the most important historical events that contributed to the promotion of the concept of civilized, legislatively normed and regulated trade relations — based on jointly developed and agreed rules, known in economic literature as “doux commerce” — were reviewed and systematized. The findings of the study indicate the importance and expediency of civilizational approaches laid at the beginning of the 18th century as the foundation of international trade continue to be confirmed today through the implementation of specific programs within the World Trade Organization, the United Nations Organization and the UN Conference on Trade and Development. However, further development of the rules and principles of international trade as a whole, and the multilateral trading system in particular, is hindered by the geopolitical rivalry among major powers, as it has happened repeatedly throughout history. Thus, the crisis of the modern multilateral trading system is related not so much to “outdated rules and principles”, since none of international actor is ready to abandon them, but to the reluctance of developing countries to expand the powers/mandates of the World Trade Organization, which would give it additional functions and capabilities. The theoretical significance lies in the systematization of cause-effect relations underlying the formation of the modern institutionalized multilateral trading system. The practical importance of the results is due to the need to take into account the historical context of the present situation in international trade by the Russian government authorities, coordinating bodies of the Eurasian Economic Union and interested major economic agents to develop adequate behavioral models and decisions in the intensifying trade wars between major powers.
The findings of the study show that the current distortions in the global market, including protectionism, do not signal the collapse of the international trading system, but are part of its evolution. Supporting and promoting isolationist ideas is economically unjustified and inadvisable for any state in the long term.