Empty words won’t limit the ‘wriggle room’

Democracy ensures we get the governments we deserve.

Gideon Rachman seems to think we deserve only to be consoled for the political dilemma of G20 leaders rather than offered real solutions to the frailties of the global trade framework. He agrees the problem is the threat of 'wiggle room' protection:

"[I]f the world’s political leaders start deliberately increasing barriers to trade, they will deepen and worsen the economic crisis – and risk making the process of deglobalisation a permanent shift. Most political leaders know this – and so they are still a little embarrassed about direct measures to increase tariffs. So a new wave of protectionism will take indirect forms." Extract from Gideon Rachman in the Financial Times

But he's satisfied with the appearance of collaboration to expose and prohibit protection, being convinced there's no resolve to take real action.

"It will be tempting to laugh, if and when the communiqué from the London summit contains the familiar pledges to avoid protectionism and to complete the Doha round. But it is probably important that world leaders at least promise to follow the path of virtue – even if they know that they may sin."

That's too sophisticated a dish for me, GR. If you say that you're happy to eat smoke, then smoke is what you'll be served.

This is the worst market recession since the global trading framework was created sixty years ago. We know what the threats are, we know what it means to avoid them. Don't we deserve more than 'empty words' from governments?

Tags for this entry: trade wto protection g20 transparency surveillance wriggle