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Protecting Trade

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14.01.2020

CHICAGO – Toward the end of the last decade, globalization – the lowering of barriers to cross-border flows of goods, services, investment, and information – came under severe pressure. Populist politicians in many countries accused others of various economic wrongs, and pushed to rewrite trade agreements. Developing countries have argued for decades that the rules governing international trade are profoundly unfair. But why are similar complaints now emanating from the developed countries that established most of those rules?

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    A simple but inadequate explanation is “competition.” In the 1960s and 1970s, industrialized countries focused on opening foreign markets for their goods and set the rules accordingly. Since then, the tide has turned. Emerging economies, especially China, got a lot better at producing........

    © Project Syndicate