Has the financial crisis set back hopes for a new multilateral trade agreement?
Protectionism is a real threat. At a time of crisis, there is a temptation to close borders… But we have also learned that it is a self-defeating strategy. It doesn’t help us get out of a recession or depression – it rather deepens and prolongs it. So far, countries have resisted protectionist pressures, with really few exceptions. Why multilateral trade deals are better The World Trade Organisation doesn’t have the capacity to prevent countries from entering into bilateral agreements. There are distortions that cannot be removed through bilateral agreements. None of the bilateral agreements are targeting agriculture subsidies. Distortions are never on the menu of bilateral agreements, that’s why they move so fast. Bilateral agreements cannot substitute for a multilateral agreement. The coverage is not as large, and the impact in terms of development is not as large. All bilateral agreements imply discrimination against those that are outside the bilateral agreements. Will Africa’s l
