Below is an extract of a post published on Guardian titled "Governments should turn back the clock over trade policy"
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Via: Guardian
Policymakers could do worse than return to formula of negotiating reciprocal elimination of tariffs The “bicycle theory” used to be a metaphor for international trade policy. Just as standing still on a bicycle is not an option – one must keep moving forward or else fall over – so it was said that trade negotiators must engage in successive rounds of liberalisation. Otherwise, global openness would gradually succumb to protectionist interests. I don’t know whether the theory was right. In fact, had governments stood still on trade policy over the last three years, the world would be a lot better off than it is now. Trade is faltering – global volumes are down a remarkable 1.1% over the last 12 months – as inept bikers collide chaotically with one another. Related: The IMF is losing influence – and for that it must share the blame Continue reading…
