Biden's Frozen Trade Policy
The postwar era of widespread, robust global economic growth attests to the power of trade liberalization and US leadership within the international trading system. Unfortunately, the current US administration has failed to reverse its predecessor's disastrous policies, leaving American producers and their workers worse off.
WASHINGTON, DC – Global economic growth since World War II has been an unprecedented success. Compared to the first half of the twentieth century, growth has been both more rapid and more widely shared around the world, leading to dramatic increases in life expectancy and health conditions in developing countries.
Trade liberalization was an important factor in that progress. Among developing countries, those that opened their economies up to international trade experienced rapid growth. South Korea, Chile, China, and India in the 1990s are prominent examples of successful trade liberalization, but there are many others.
The United States led the postwar process of integration, both by maintaining its own very open economy and by helping to establish the World Trade Organization. The WTO’s articles govern the rules of trade and enable negotiation of multilateral trade arrangements, including reciprocal tariff reductions. Without this international rule-of-law foundation, trade liberalization and the resulting economic growth could not have proceeded as it did. Importantly, because the WTO is a multilateral institution, it guarantees the rights of all countries, large and small.