Reconsidering the International Trading System

Reconsidering the International Trading SystemPatrick A. Messerlin Proposed diagnosticIt consists in a few observations on domestic issues key for the world trading system because they determine the strength of the incentives in favor to trade liberalization. trade negotiators have only recently started to tackle liberalization issues (agriculture) protected by constitutional rules in key democratic trading countries. the last twenty years have witnessed increasingly thinner majorities supporting democratic governments, making their trade policy less resistant to tiny pressure groups and slowing down trade negotiations. preferential trade agreement (which share the above problems with the multilateral regime) have benefitted from a priori

Global Economic Symposium Anne O. Krueger September 5 2009 Reconsidering the International Trading System It is obviously desirable to bring tariffs and other trade barriers down AND to bind tariffs at the new low levels or their actual levels, rather than having much higher bindings. But the only way that can be done is in the context of multilateral trade negotiations. So the question being asked is really how to get the Doha Round back on track. Clearly, that is a matter for agreement among the major trading countries, and it would appear that agreement was fairly close at

1. … world trade has grown almost twice as fast as world GDP over recent decades. It seems free trade is at work. Why do we need more regulation for more freedom? First, regarding the statement that "free trade is at work": While trade growth has outpaced world GDP growth overall, trade still has a way to go to become 'free' and fair. For example: The integration of the least developed countries (LDCs) into global trade is still constrained by their dependence on primary agricultural products and natural resources and by low value-addition and low technology application in

The International Trading System is challenged by three interrelated developments: increasing hetereogeneity of its more than 150 members; conflicting targets between non-discrimination and distributional fairness; and the inability to conclude agreements. Answers to these challenges should focus on regaining the reputation of the International Trading System as the only global regulatory order which defends non-discrimination and less powerful member states against the pressure of vested interest groups and powerful members. Special treatment of countries and sectors should be deleted and be replaced by subsidies and transfers. The single undertaking approach should be replaced by agreements on core issues that facilitate