Policy Papers

Review of the Role of Trade in the Work of the Fund

Publication Date:

April 3, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper outlines key changes in the global trade landscape in recent years, reviews the role of the Fund in this area, and outlines a trade strategy for the Fund going forward. The analysis points to three key messages. First, while trade has been resilient vis-à-vis recent global shocks, the deteriorating trade policy environment poses risks to the current levels of prosperity. Second, the Fund has responded quickly to key trade developments in its multilateral surveillance, but attention to trade policy has declined pointing to the need of improved expertise. Third, a reinvigorated trade strategy for the Fund would help country authorities to address key challenges, including adjusting to structural changes associated with climate change and new technologies; promoting policy coherence between trade and non-trade objectives such as climate, inequality, and security; and managing rising geopolitical tensions and risks of geo-economic fragmentation.

Series:

Policy Paper No. 2023/013

Subject:

International trade Political economy

Notes:

Online Appendix I. Management Engagements and IMF Research on Trade

Press Release: IMF Executive Board Concludes the Review of the Role of Trade in the Work of the Fund

Frequency:

occasional