NEW YORK – Economists generally agree on the advantages of openness in trade. But the case for non-discrimination in trade is also a compelling one. So good trade policy should push for multilateral trade liberalization such as at the Doha Round, rather than preferential trade agreements (PTAs) such as free-trade areas (FTAs), and also ensure that any retreat into protectionism does not degenerate into discriminatory trade practices.
The last G-20 meeting in Canada was a disappointment on the first front. At the insistence of the United States, an earlier reference by the G-20 to a definite date for completing the Doha Round was dropped. Instead, unwittingly rubbing salt into the wound, President Barack Obama announced his administration’s willingness to see the US-South Korea FTA through.