Changes of the Form of Trade & the Rule of Law in Global Trade: from WTO to TPP

The traditional trade form is goods that are made in one nation and sold to customers in another nation. In this kind of trade, The key to promote the liberalization of trade is to reduce the tariff. The WTO succeeds in acclimatizing itself to the traditional international trade pattern through establishing a system focusing on restraining the tariff. This system can be accepted by all nations because the WTO adheres to the four reasons. The first is the general principle of reciprocity among each nation. The second is the "non reciprocity" between developed nations and developing nations, which is called special and differential provisions. The third is formed "green room meeting" mechanism in the negotiations. The forth is formed safety cabin system in dispute settlement. The WTO lacks the motivation and mechanism to reach further agreement and cannot establish a new system adapting to this new trend. TPP conform to the trend of global supply chain and succeeded in incorporating into the social responsibility clause. The TPP will become the core of rule of law in global trade in future, but the governance of Global trade needs multi-level rules and regulations. China should adapt to this development and gradually incorporate into these rules when formulating regional trade or domestic rules in future.