US Shares Blame for Trade Talk Collapse

An unsatisfactory end to the Doha Round of trade talks also signals the end of a US policy of “competitive liberalization,” writes economist Lael Brainard. Until now, this policy included pursuing bilateral and regional trade agreements with the hope of unlocking worldwide multilateral negotiations. The failure of Doha, with midterm elections approaching in the US, makes it unlikely that President Bush will use political capital to revive multilateral trade talks anytime in the near future. To revive a worldwide trade agreement would require the president to lead a frank conversation with US citizens about politically sensitive topics such as offshoring of jobs and the declining competitiveness of US workers in the global market. The nation would have to stop its massive spending spree and love affair with debt. To include the expansion of the global trading system as a part of his legacy, Brainard writes, Bush would have to assert political energy into building a consensus on the benefits of global trade for all Americans – and confront the problems with innovative and progressive policies. – YaleGlobal