Sunday, July 30, 2006

Trade diplomacy and internal politics

The trade diplomat's incantation that to open his market is a “concession” granted in exchange for an opening somewhere else is economic nonsense spouted for domestic political purpose.
But it is remarkably fruitful nonsense because, within the World Trade Organisation, any concession to one trade partner is automatically extended to all members. This trick has helped the world enjoy decades of prosperity.
(Source The Economist)

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