The Free-Trade Paradox

The collapse last year of the Doha Round has had little apparent impact on global trade. Worldwide merchandise exports increased fivefold in the quarter century following 1980, and two thirds of the global reduction in tariff barriers may be attributed to unilateral decisions as opposed to regional or international trade agreements. Economic growth has spiraled skyward, thanks largely to governments' desire for cheap imports and technological innovation, writes Foreign Policy editor Moisés Naím. Despite many widespread benefits, free-trade agreements still motivate narrow constituencies to organize against talks. Such resistance overlooks the tremendous potential of the Doha Round, which could increase global GDP by at least $50 billion and alleviate poverty for more than 32 million people. A Doha agreement could also improve safety: “No country acting alone stands as good a chance of monitoring and curtailing lethal goods as does the WTO working in concert with governments across the globe,” writes Naím. In the end, he concludes that free trade represents extraordinary hope for increasing safety, wealth and equality throughout the world. – YaleGlobal