Trade Is War and 'War Is Peace': Reflections on International Economic Law in Challenging Times

Abstract

This paper aims to reflect on the current trade disputes occurring in the international trading regime through an analysis of current trade theory. The paper proceeds as follows. It first sets out the factual background as relevant. Specifically, it notes (i) the growing multilateralism evident globally, characterised by increasing interlocking and integrated multilateralism, through the mobilisation and availability of regional development bank funding (eg, the EIB and AIIB) and preferential trade agreements; and (ii) the simultaneous withdrawal from global trade towards regionalism, characterised by differing degrees of economic protectionism. The paper considers the underlying and ostensible causes of and for this withdrawal, placing a special emphasis on US-China relations and tensions, particularly as these arise out of, and relate, to the growing reliance on and use of the Renminbi. This factual background establishes the basis for the developments later in the paper. The paper, secondly, outlines a theory of international economic integration. It suggests a new view on international economic law as global justice, by considering the analysis of the writings of political philosophers Thomas Nagel, David Miller and Derek Parfit. The account which emerges is relatively conservative in nature, providing a justification for increasing regionalism and limited internationalism.

Keywords: Globalisation, global justice, international economic law, trade wars, renminbi