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After the breakdown of WTO Doha Round negotiations this summer, some economists -- including IIE’s Fred Bergsten - are advocating the pursuit of regional or preferential trade agreements (PTAs) to further free trade while the WTO is stalled.
"Every additional PTA will become one more obstacle to the universal and non-discriminatory trade liberalization that the world needs. PTAs have been more easily hijacked by special interests groups and are not resulting in really good instruments. NAFTA was pre WTO and was really an opportunity for Canada to get rid of some wrong things that they had got in the early FTA with the US. The sheer size of Canada-Mexico together and the wisdom of the first President Bush and President Clinton Administrations permitted a deal that became a positive force to conclude the Uruguay round. But that was a long time ago and the present deals are little monsters that will be much regretted in the future."
Today, we published this year’s Commitment to Development Index (CDI), which ranks 27 of the world’s richest countries in how well their policies help to spread global prosperity to the developing world.