The Analysis On Theoretical Value Of The Multilateral Trade System In Liberty And Protection

It has been last 200 years when international trade theory has evolution with the controversy between liberalism and protectionism. And, international trade has gain a rapid development with a certain problems that make progress in international trade theory for 59 years since multilateral trade system come into being. On the other hand, the development of international trade theory supplied a stable theory foundation so that it could let the multilateral trade system develop excellently. Using of theoretical analysis and comparative analysis, research the theoretical value of the multilateral trade system in the interactional process. The aim of GATT is to eliminate every kind of trade barriers in order to promote trade. In real world, the level of world average tariff decline and the world welfare boom in the function of GATT. However, the boom of trade gave birth to the new problems. The appearance of intra-industry trade has a huge impact on international trade theory and brings the imperfect competition and the economies of scale into the frame of trade theory. WTO came into being because of the progress of theory and the changes of real circumstance. It has the same tenet as GATT and has an effect on international trade with the basis of abstemious liberal trade theory. As GATT, it's not plain sailing in the process of development. Although some problems such as the relationship between small country and big country have been solved by the international trade theory, the others haven't, for example the developing country margined and the shortage of trade decision-making system and so on. Though the abstemious liberal trade theory has been proved right by the multilateral trade system, the theory of comparative advantage has not give the developing country the method of advance. However, the theory of competition advantage explains it and promotes the progress of WTO. The multilateral trade system will exist and drive the international trade theory advance in according with the interaction between international trade theory and the multilateral trade system. It is meaningful for understanding the multilateral trade system and participating in the world trade.