Adhering to the terms of international trade deals, or any international deals for that matter, has always been a matter of trust. And trust mattered, for without it, no deal was a deal, and no country could be held to its end of a bargain if it simply chose not to honor its obligations. After all, what can really be done about it? Complain to the United Nations? Take it to the Hague? Go to war?
Since World War II, there has been one alliance where the trust was so deeply grounded that the idea of breaching agreements seemed unthinkable. That was between the United States and Europe, since refined to the European Union. We were allies against Hitler and the Nazis, partners in NATO and the bastion of first world democracy. It was us against the world, the world being the Soviet Union and Communist China, with third world countries being off to the side for occasional plunder or noblesse oblige. Or both. Continue reading →