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Trade
Trade is an important driver of economic growth around the world. CGD’s research focuses on how trade policies can support poverty reduction and economic growth in developing economies by promoting market access that opens the door to foreign investment and job creation.
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Trade ministers, while attending the World Trade Organization (WTO) meeting in Nairobi, again managed to pull a rabbit out of the hat. Faced with the prospect of complete failure, ministers worked overtime to cobble together a package of mostly small, symbolic agreements at the WTO’s Tenth Ministerial Conference. While the outcome is not being greeted with the same dismay, Nairobi looks more like the Copenhagen summit on climate change than the recent session in Paris, which managed to bridge North-South differences.
2015 was a big year for development – and for the CGD Podcast.
Emerging market countries that manage to diversify and upgrade their production and export base grow more rapidly and enjoy greater welfare gains than those that do not. Foreign direct investment in manufacturing is concentrated in middle- and upper-skilled activities -- not lowest-skilled operations -- and thus offers many opportunities for structural transformation of the host economy. But the challenge of using FDI to diversify and upgrade the local production and export base is fraught with market failures and tricky obstacles. Contemporary debates about industrial policy as a development tool focus on how best to overcome these market failures and other difficulties.
The recently agreed upon but not yet signed Trans-Pacific Partnership (TPP), which will cover 12 countries and 40 percent of global GDP, is certain to loom large as the World Trade Organization (WTO) celebrates its 20th anniversary in Nairobi next week. For US trade negotiators, conclusion of the TPP deal means they can turn their attention to talks with the European Union on the Transatlantic Trade and Investment Partnership.
How much do rich countries’ policies help or hinder the world’s poorest people?
The Commitment to Development Index ranks 27 of the richest countries on their dedication to policies that benefit poorer nations. Denmark takes first in 2015. The UK is tied for sixth while the United States is 21st. Japan takes last of 27.
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Trade has the potential to raise incomes worldwide. But trade creates losers as well as winners. This Rich World, Poor World brief provides an accessible introduction to the impact of global trade on U.S. jobs and suggests policies that the U.S. can pursue to maximize the gains and minimize the losses. Learn more about Rich World, Poor World: A Guide to Global Development
TPP? TTIP? In the world of trade negotiations, there is no shortage of acronyms. And who better to break them down for us than Harsha Singh, former deputy director general at the World Trade Organization?

A healthy US agricultural sector is critical to global food security. American farmers help keep food affordable around the world, but they also receive public assistance that too often comes at the expense of American taxpayers and consumers, as well as millions of poor farmers in developing countries. While the farm bill is not the primary vehicle for setting policy on biofuels or antibiotic use, Congress could use the legislation to advance smart policy changes that set the stage for broader reforms.

After a longer-than expected settling in period, the Obama administration is finally moving on trade policy. What is unclear - and the early signs are troubling - is whether U.S. policy will also encompass the president's promise to use trade as a tool of development.

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