The WTO and its predecessor the GATT have been remarkably successful in negotiating down tariffs over the past six decades. But trade is still a long way from free and since the global crisis, it is becoming even less so. This column reviews the facts, economics, and motives behind these new non-tariff barriers and discusses the challenges they pose for the WTO.
Marc Bacchetta, Cosimo Beverelli, Tuesday, July 31, 2012 - 00:00
Michael J Ferrantino, Saturday, February 11, 2012 - 00:00
As tariffs have declined steadily since the 1940s, government interventions to restrict imports have increasingly taken non-tariff forms. This column argues these add many trade costs along the supply chain and, in a world where production is fragmented across countries, they are associated with development traps. Regional initiatives and a focus on logistics measures can help bring supply chains to new parts of the world.