Trade Policy, New Century: The WTO, FTAs and Asia Rising

Abstract

In recent years, debates on international trade policy have focused on the role of the World Trade Organization and the two big political and economic powers - the USA and the EU. In this paper, the author, an expert in trade policy, argues that this focus must change. Large supra-national institutions have become bogged down and are no longer in a position to drive trade liberalisation. Also, the world's fastest growing economies are those Asian economies that have embraced free trade, in many cases going beyond international requirements. Asian countries - China most conspicuously - have been taking the initiative by pursuing free trade unilaterally. This must continue and spread. The Western developed economies should respond by removing their own protectionism. Unilateral action, not trade negotiations, is the key: the world cannot wait for the WTO.

Keywords: Free Trade, Trade Policy, World Trade Organization, WTO, Free Trade Agreements, FTA, ASEAN

JEL Classification: F10, F13, F15