Monday, December 12, 2016
Protectionism: choosing the wrong medicine to the right illness
Trade has undoubtedly created unimaginable wealth and welfare throughout the world, but at the same time it has also precipitated worrisome disparities in job creation and income distribution in many countries.
Spellbound this afternoon, I listened to Yi Xiaozhun, Deputy Secretary General of WTO, to reaffirm my conviction that protectionism is the wrong medicine for the cure of this malady.
Rather than questioning the merits of trade, affected partner countries of our multilateral trading community should find those tools and economic policies which ensure that (a) benefits from trade are distributed as fairly as possible among local communities and their peoples; and (b) local industry of high import content is not unreasonably exposed to (unfair) foreign competition.
A great lecture by all counts.