USA’s trade policy in the context of global crisis and the decline of North American hegemony

Vol. 39 No. 3 (2019)

Jul-Sep / 2019
Published July 1, 2019
PDF-English
PDF-English

How to Cite

Guillén, Arturo. 2019. “USA’s Trade Policy in the Context of Global Crisis and the Decline of North American Hegemony”. Brazilian Journal of Political Economy 39 (3), 387-407. https://doi.org/10.1590/0101-31572019-3046.

USA’s trade policy in the context of global crisis and the decline of North American hegemony

Arturo Guillén
Professor – Researcher of the Department of Economics of the Universidad Autónoma Metropolitana Iztapalapa, Mexico, México. Professor of the “Postgraduate in Social Studies” of the same University. General Coordinator of the international network Red Eurolatinoamericana de Estudios sobre el Desarrollo Celso Furtado
Brazilian Journal of Political Economy, Vol. 39 No. 3 (2019), Jul-Sep / 2019, Pages 387-407

Abstract

The global crisis of 2007 reinforced the deflationary tendencies, as well as the withdrawal of the central countries inwards. After the Great Recession 2008-2009, most economies have experienced semi-stagnation and deglobalization processes. The crisis accelerated the decline of the hegemony of the United States. While they retain an overwhelming military advantage and maintain financial hegemony, they have lost ground in production, in international trade and in direct foreign investment. Trump’s trade policy will accelerate deglobalization. And while its tax cut has had a short-term positive effect on growth, it will be difficult to overcome “secular stagnation”.

JEL Classification: F4.


Keywords: Global crisis, deglobalization, North American trade policy, USA hegemonic declination, stagnation