Mitigating the adjustment costs of international trade

The evidence demonstrating that nations gain from trade is overwhelming. However, trade liberalization can cause disruption to firms and workers, and its gains and losses are spread unevenly. While many gain from trade, import surges have sometimes undermined the economic viability of whole communit...

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Autores principales: Akman, Sait, Brandi, Clara, Dadush, Uri, Draper, Peter, Freytag, Andreas, Kautz, Miriam, Rashish, Peter, Schwarzer, Johannes, Vos, Rob
Formato: Brief
Lenguaje:Inglés
Publicado: T20 Argentina 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/145438
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author Akman, Sait
Brandi, Clara
Dadush, Uri
Draper, Peter
Freytag, Andreas
Kautz, Miriam
Rashish, Peter
Schwarzer, Johannes
Vos, Rob
author_browse Akman, Sait
Brandi, Clara
Dadush, Uri
Draper, Peter
Freytag, Andreas
Kautz, Miriam
Rashish, Peter
Schwarzer, Johannes
Vos, Rob
author_facet Akman, Sait
Brandi, Clara
Dadush, Uri
Draper, Peter
Freytag, Andreas
Kautz, Miriam
Rashish, Peter
Schwarzer, Johannes
Vos, Rob
author_sort Akman, Sait
collection Repository of Agricultural Research Outputs (CGSpace)
description The evidence demonstrating that nations gain from trade is overwhelming. However, trade liberalization can cause disruption to firms and workers, and its gains and losses are spread unevenly. While many gain from trade, import surges have sometimes undermined the economic viability of whole communities. Existing mechanisms specifically designed to mitigate trade adjustment costs are often inadequate. They can be a source of inefficiency and inequity since trade shocks are only a part of the economic uncertainty affecting workers. Gradualism in trade liberalization combined with preemptive measures to strengthen competitiveness, can help mitigate adjustment costs. Displaced workers are best helped using generally applied safety nets, not those specific to trade. But these are not enough. Trade adjustment requires mobility of factors. International coordination is required to support an open and predictable trading system under the WTO, as the greatest future source of trade shocks could be protectionism, not trade liberalization.
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spelling CGSpace1454382025-02-24T06:45:17Z Mitigating the adjustment costs of international trade Akman, Sait Brandi, Clara Dadush, Uri Draper, Peter Freytag, Andreas Kautz, Miriam Rashish, Peter Schwarzer, Johannes Vos, Rob trade liberalization international cooperation protection trade barriers economic policies wto climate change mitigation international trade The evidence demonstrating that nations gain from trade is overwhelming. However, trade liberalization can cause disruption to firms and workers, and its gains and losses are spread unevenly. While many gain from trade, import surges have sometimes undermined the economic viability of whole communities. Existing mechanisms specifically designed to mitigate trade adjustment costs are often inadequate. They can be a source of inefficiency and inequity since trade shocks are only a part of the economic uncertainty affecting workers. Gradualism in trade liberalization combined with preemptive measures to strengthen competitiveness, can help mitigate adjustment costs. Displaced workers are best helped using generally applied safety nets, not those specific to trade. But these are not enough. Trade adjustment requires mobility of factors. International coordination is required to support an open and predictable trading system under the WTO, as the greatest future source of trade shocks could be protectionism, not trade liberalization. 2018-09-27 2024-06-21T09:04:30Z 2024-06-21T09:04:30Z Brief https://hdl.handle.net/10568/145438 en http://www.economics-ejournal.org/economics/discussionpapers/2018-49 Open Access T20 Argentina Akman, Sait; Brandi, Clara; Dadush, Uri; Draper, Peter; Freytag, Andreas; Kautz, Miriam; Rashish, Peter; Schwarzer, Johannes; and Vos, Rob. 2018. Mitigating the adjustment costs of international trade. T20 Argentina: Trade, Investment and Tax Cooperation Task Force Brief. https://www.g20-insights.org/policy_briefs/mitigating-the-adjustment-costs-of-international-trade/
spellingShingle trade liberalization
international cooperation
protection
trade barriers
economic policies
wto
climate change mitigation
international trade
Akman, Sait
Brandi, Clara
Dadush, Uri
Draper, Peter
Freytag, Andreas
Kautz, Miriam
Rashish, Peter
Schwarzer, Johannes
Vos, Rob
Mitigating the adjustment costs of international trade
title Mitigating the adjustment costs of international trade
title_full Mitigating the adjustment costs of international trade
title_fullStr Mitigating the adjustment costs of international trade
title_full_unstemmed Mitigating the adjustment costs of international trade
title_short Mitigating the adjustment costs of international trade
title_sort mitigating the adjustment costs of international trade
topic trade liberalization
international cooperation
protection
trade barriers
economic policies
wto
climate change mitigation
international trade
url https://hdl.handle.net/10568/145438
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