The world of trade is changing dramatically. Is the WTO keeping up?
We’re moving from a world where goods are simply shipped internationally, to one where goods are also made internationally.
In a fascinating article for the Centre for Economic Policy Research (CEPR), Richard Baldwin argues that while the WTO has done a good job in policing the traditional trade world where we ship goods made in one country to another, it is ill equipped to deal with the emerging world dependent on complex global supply chains (“supply-chain trade”). Before we slide further into a world of trade agreements based on mega-bilaterals and mega-regionals – that will also end up side-lining new trade giants such as China, India and Brazil – should we reconsider the role of the WTO and rebuild it for modern times? This CEPR paper calls for the countries and manufacturers of the world to unite under the common umbrella of a reconfigured WTO 2.0
Hat tip to
@peraltenberg for spotting this one.