The impact of the crisis on small developing countries has been severe. As external financing dried up in the second semester of 2008, their exports fell by 33% -- vastly surpassing the widely advertised losses by major developing countries like China and India. Some smaller countries have experienced even larger drops as a result of stiff reductions in export prices.
Trade policy in a time of crisis: Suggestions for developing countries
Gary Clyde Hufbauer, Sherry Stephenson, 11 May 2009
A crisis round of trade negotiations?
Arvind Subramanian, Aaditya Mattoo, 30 March 2009
Protectionism is steadily mounting. The wide spectrum of new protectionist measures share two features – they are WTO-legal and largely unaddressed by the ongoing Doha Round. The current solution adopted by the world’s leading countries in the G20 is a re-statement of good intentions – not to erect new barriers and to try, yet again, to complete the Doha Round.
Buy American is bad for America (and everyone else)
Gary Clyde Hufbauer, Jeffrey J. Schott , 5 February 2009
On January 28, 2009, the US House of Representatives passed the American Recovery and Reinvestment Act of 2009. Out of the bill's 700 text pages, a small half-page section attracted enormous media attention: the section requiring that all public projects funded by the stimulus plan must use only iron and steel produced in the US.
What world leaders should do to halt the spread of protectionism
Richard Baldwin, Simon J Evenett, 4 December 2008
VoxEU.org has just published another Ebook in our “What leaders should do in the Crisis” series; this one focuses on trade. Unless world leaders strengthen trade cooperation, new tariffs and competitive devaluations could trigger a protectionist spiral of WTO-consistent trade barriers.
The challenges of trade financing
Marc Auboin, 28 January 2009
Part of the collapse of world trade is due to problems with trade credit financing. Since statistics on this are scare, it is impossible to be precise about the most immediately salient and challenging feature of the financial crisis from a trade perspective – the supply of trade finance.
The value of making commitments externally: Evidence from WTO accessions
Man-Keung Tang, Shang-Jin Wei, 22 January 2009
Pro-growth reforms can be “locked in” through legally binding external commitments in WTO accessions, free trade agreements, or IMF and World Bank loans. Once embedded in an international treaty, a reform programme carries higher costs of reversal, which makes it less likely to be undone unilaterally, and hence becomes more appealing to investors.
Seeping in slowly: The WTO and human rights
Susan Ariel Aaronson, 20 January 2009
The world’s most misunderstood international organisation sits in a grand palace on the shores of Lake Geneva. The building’s grandeur stands in stark contrast to the organisation’s popularity. This organisation, once a club called the General Agreement on Tariffs and Trade (GATT), was created by the post World War II planners in 1947-1948.
The Doha endgame and the future of the WTO
Claude Barfield, 19 January 2009
On December 12, the WTO’s Doha negotiations collapsed. More accurately, trade negotiators from the member states finally acknowledged what had been evident for months –the substantive divisions on central issues were too deep and the political will too puny to bridge the gaps. In recent weeks, there have been frantic calls for quick action to restart the negotiating process.
Multilateral free trade: The Obama letdown
Jagdish Bhagwati, 9 January 2009
In the Financial Times, (“Obama’s Free-Trade Credentials Top Clinton’s”, 3 March 2008), I had argued that, unlike with Hillary Clinton, there were several reasons why one could be optimistic that Obama would follow a pro-trade policy despite “prudential” protectio
The economic crisis, Doha completion, and protectionist pressure
Joseph Francois, 17 December 2008
With a deepening economic crisis and rising calls for public assistance in sectors ranging from finance to autos, there are also signs of growing nervousness about the dangers of protectionism. These include editorials in the financial press and high profile think tank studies on the stumbling Doha Round (Wolf 2008, Bouet and LaBorde 2008, Baldwin and Evenett 2008).
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Cadot, de Melo, 16 June 2014