Going Their Own Way

The trade system put in place through decades of negotiations and led by the World Trade Organization (WTO) is coming apart. Alliances that have withstood significant tests in the years since the Second World War are starting to come undone. The countries of the world that once sought to embody democratic ideals are becoming less committed. Nuclear détente, embedded in many international treaties, is getting weaker. The world’s acceptance of dollar dominance and its investors’ willingness to buy U.S. Treasurys are starting to slide. And finally, anti-American sentiment has recently found new momentum, as Washington, D.C., takes actions that insult other countries, their leaders and citizens. In other words, the old order of power, leverage and relationships is coming undone. World leaders are looking for a new set of rules, a new structure that can rebalance global relations and replace the old order, which is rapidly fading. New trade accords are surfacing almost daily, as countries look for fresh ways to stimulate their economies and for pathways to replace the structure that, from Europe’s perspective, the U.S. has torn apart. The next paradigm or structure will likely emerge from the leaders of countries not included in the category of great military powers.