The global trade system created in the aftermath of World War II has expanded economic prosperity, lifted millions out of poverty and contributed to global stability. But it hasn’t kept up with the emergence of new major trading countries, advances in technology or new types of trade barriers.
The big picture: A growing number of people around the world, particularly in the U.S. and Europe, feel disenfranchised by the current order, which they hold responsible for widening income inequality and a decline in well-paying jobs. Reforms are needed if the rules-based trading system is to remain viable and relevant.
The Trump administration advocates a fundamental overhaul, while others prefer adjustments on the margins, leaving the system largely intact. Here are five suggestions for a third path that would capture the benefits of the current rules-based trade system while addressing its greatest shortcomings…[Read More Here]