Effects of exchange-rate misalignments on tariffs
Vera Thorstensen, Lucas Ferraz, Emerson Marçal 04 December 2011
Persistent exchange-rate misalignments have created trade frictions worldwide. This column argues that the WTO should adopt trade rules that allow nations to neutralise the effects of exchange-rate misalignments. Otherwise, the WTO might become a diplomatic-juridical fiction.
The subject of currency wars and trade wars is gradually gathering interest among scholars and public opinion. In the face of the magnitude of present misalignments and their clear impacts on trade, one may wonder why and how this issue is absent from trade rules and multilateral trade negotiations at the WTO in Geneva.
Exchange rates International trade
WTO, tariffs, exchange-rate misalignment