The International Monetary Fund (IMF), the World Bank and the World Trade Organisation (WTO) have stressed the need to remove trade barriers and reduce subsidies and other measures that distort trade.
They stated this in a joint statement presented yesterday by the Managing Director of the IMF, Ms. Christine Lagarde; President of the World Bank, Mr. Jim Yong Kim; and Director-General, WTO, Mr. Roberto Azevedo, on the occasion of the G20 Leadersâ€™ Summit in Hamburg, Germany.
They pointed out that the economic wellbeing of billions of people depends on trade, stating that deeper trade integration twinned with supportive domestic policies can help boost incomes and accelerate global growth.
This, according to them, called for decisive actions by world leaders gathering for the G-20 Summit this week.
â€œThe good news is that when it comes to trade, we do not need to choose between inclusiveness and economic growth. Evidence shows that opening of economies to trade, especially in the late 20th century, boosted incomes and living standards across advanced and developing countries.
“Since the early 2000â€™s, however, the pace of opening has largely stalled, with too many existing trade barriers and other policies that favor chosen domestic industries over the broader economy remaining in place, and new barriers being created. Such policies can cause a chain reaction, as other countries adopt similar measures with the effect of lowering overall growth, reducing output, and harming workers.”