Trade in a globalizing world

Economic integration is proceeding across the world at an unprecedented pace. Globalization has brought enormous benefits for many countries and citizens. But some have been on the losing end of the process, and opposition to further integration is mounting for a multitude of reasons. Trade is just one aspect of globalization, and links with broader economic, political and technological forces are manifold and complex. Certain arguments against open trade are fuelled by a variety of factors – including a general fear of change – that have little to do with further trade opening. Governments responding to antitrade pressures stemming from anti-globalization arguments risk making poor policy choices. Trade scepticism is clearly a cause of concern, particularly at a time when WTO members are striving to complete the Doha Round. At this crucial juncture, it seems appropriate to revisit the case for trade and to ask ourselves whether the traditional arguments in favour of free trade are still valid.