{
  "title": "Creating a Better Global Trade System",
  "publication": "IMF Blog, May 29, 2018",
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  "summary": "Recent discussions have focused on protectionist measures and diplomatic tensions, raising concerns over growth and jobs.",
  "sections": [
    {
      "heading": "Overview: the new era of trade",
      "content": "- Recent discussions have focused on protectionist measures and diplomatic tensions, raising concerns over growth and jobs.\n- The piece argues we are entering a new era of trade in which data flows are becoming more important than physical trade.\n- Between 1986-2008, global trade in goods and services grew at more than twice the rate of the global economy.\n- In recent years, growth in traditional trade has barely exceeded global GDP growth.\n- According to Cisco, the amount of cross-border bandwidth used grew 90-fold between 2005 and 2016, and is expected to grow an additional 13-fold by 2023.\n- The role of data boosts the tradability of services—engineering, communications, transportation—leading to the central claim: \"The future of trade is the future of data.\""
    },
    {
      "heading": "More trade in services: findings and potential winners",
      "content": "- Global trade in services has been growing relatively fast and now accounts for one-fifth of global exports.\n- Some estimates indicate half of global trade in services is already driven by digital technology.\n- Trade barriers for services remain extremely high, equivalent to tariffs of some 30 to 50 percent.\n- Potential beneficiaries if services become the main driver of global trade:\n  - Advanced economies: globally competitive in many service sectors, especially financial, legal, and consulting.\n  - Developing economies (examples given): Colombia, Ghana, and the Philippines, which are promoting tradable services such as communications and business services.\n  - Millions of small businesses and individuals who can use digital tools to leverage expertise in the global marketplace.\n- Normative statement: \"We can build the Wealth of Nations in the 21st-century on trade in services.\""
    },
    {
      "heading": "More productive: mechanisms and impacts",
      "content": "- Shift from \"physical\" to more data-driven trade can increase productivity.\n- Increasing automation may prompt reshoring of operations, potentially rejuvenating manufacturing industries in advanced economies with more domestically-based factories and higher-paying jobs.\n- 3-D printing example: companies moving production closer to customers (example of a large shoe brand printing customized soles in high-street shops).\n- If trends continue, supply chains could become shorter, more productive, and less carbon-intensive.\n- Digitalization will intensify competition, pushing companies to invest in new technologies and more efficient practices.\n- New IMF analysis shows greater competition accelerates diffusion of technology across countries and the rate of innovation.\n- It is estimated that the poorest 10 percent of consumers gain almost two thirds of their purchasing power from trade."
    },
    {
      "heading": "More inclusive: challenges and policy responses",
      "content": "- The digital revolution in trade will put further pressure on workers less well-equipped to compete.\n- Need for greater inclusiveness through scaled-up investment in training and social safety nets, enabling workers to upgrade skills and transition to higher-quality jobs.\n- Evidence cited: experiences in Canada and Sweden show that on-the-job training is more effective than classroom learning.\n- IMF roles:\n  - At the global level: analyze exchange rates and monitor global economic imbalances.\n  - At the country level: work with all our 189 members on policies to help remove trade and investment barriers, encouraging more open economies where the private sector can thrive and create jobs.\n- Summary objective: trade should be more services-based, more productive, and more inclusive so everyone can benefit."
    },
    {
      "heading": "More international cooperation: rules and reform options",
      "content": "- The postwar multilateral trade system has lifted hundreds of millions out of poverty and boosted incomes and living standards, but it needs improvement to adapt to the new era.\n- Governments face issues not squarely covered by WTO rules, including various state subsidies, restrictions on data flows, and protection of intellectual property.\n- Policy mechanisms suggested:\n  - Use \"plurilateral\" trade agreements among like-minded countries operating within the WTO framework.\n  - Negotiate new WTO agreements on e-commerce and digital services.\n- Positive example: the Trans-Pacific Partnership, or TPP-11, for the first time in a broader trade agreement guarantees the free flow of data across borders for service suppliers and investors.\n- Call to action: push for further trade reforms in a multilateral setting where rules are respected, countries work in partnership, and everyone is committed to fairness.\n- Closing proposition: by building new economic bridges and shaping a new era of trade, we can foster more prosperous and more peaceful communities across the world.\n\nChristine Lagarde, May 29, 2018 — Creating a Better Global Trade System\n\n---\n\n Content in this bundle\n\n- 建立一个更好的全球贸易体系; IMF博客; 2018 年5 月29 日\n  - 建立一个更好的全球贸易体系; IMF博客; 2018 年5 月29 日 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 建立一个更好的全球贸易体系; IMF博客; 2018 年5 月29 日 (PDF){rel=\"external\" type=\"application/pdf\"}\n- より良い世界貿易システムをつくる;   クリスティーヌ・ラガルド, IMF ブログ 2018年5月29日掲載\n  - より良い世界貿易システムをつくる;   クリスティーヌ・ラガルド, IMF ブログ 2018年5月29日掲載 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - より良い世界貿易システムをつくる;   クリスティーヌ・ラガルド, IMF ブログ 2018年5月29日掲載 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Mewujudkan Sistem Perdagangan Global yang Lebih Baik; IMF blog; 29 Mei 2018\n  - Mewujudkan Sistem Perdagangan Global yang Lebih Baik; IMF blog; 29 Mei 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Mewujudkan Sistem Perdagangan Global yang Lebih Baik; IMF blog; 29 Mei 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Создание лучшей системы мировой торговли; Кристин Лагард; Блог МВФ; 29 мая 2018 года\n  - Создание лучшей системы мировой торговли; Кристин Лагард; Блог МВФ; 29 мая 2018 года (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Создание лучшей системы мировой торговли; Кристин Лагард; Блог МВФ; 29 мая 2018 года (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- عربي\n- Português\n- https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-bicycle-frame-MD-trade-Stephen-Lam-Newscom-rtrlnine943489.gif\n\nSource: https://www.imf.org/en/blogs/articles/2018/05/29/blog-creating-a-better-global-trade-system"
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    "Authors: Christine Lagarde",
    "Published: May 29, 2018",
    "Recent discussions have focused on protectionist measures and diplomatic tensions, raising concerns over growth and jobs.",
    "The piece argues we are entering a new era of trade in which data flows are becoming more important than physical trade.",
    "Between 1986-2008, global trade in goods and services grew at more than twice the rate of the global economy.",
    "In recent years, growth in traditional trade has barely exceeded global GDP growth.",
    "According to Cisco, the amount of cross-border bandwidth used grew 90-fold between 2005 and 2016, and is expected to grow an additional 13-fold by 2023.",
    "The role of data boosts the tradability of services—engineering, communications, transportation—leading to the central claim: \"The future of trade is the future of data.\"",
    "Global trade in services has been growing relatively fast and now accounts for one-fifth of global exports.",
    "Some estimates indicate half of global trade in services is already driven by digital technology.",
    "Trade barriers for services remain extremely high, equivalent to tariffs of some 30 to 50 percent.",
    "Potential beneficiaries if services become the main driver of global trade:",
    "Normative statement: \"We can build the Wealth of Nations in the 21st-century on trade in services.\"",
    "Shift from \"physical\" to more data-driven trade can increase productivity.",
    "Increasing automation may prompt reshoring of operations, potentially rejuvenating manufacturing industries in advanced economies with more domestically-based factories and higher-paying jobs.",
    "3-D printing example: companies moving production closer to customers (example of a large shoe brand printing customized soles in high-street shops).",
    "If trends continue, supply chains could become shorter, more productive, and less carbon-intensive.",
    "Digitalization will intensify competition, pushing companies to invest in new technologies and more efficient practices.",
    "New IMF analysis shows greater competition accelerates diffusion of technology across countries and the rate of innovation.",
    "It is estimated that the poorest 10 percent of consumers gain almost two thirds of their purchasing power from trade.",
    "The digital revolution in trade will put further pressure on workers less well-equipped to compete.",
    "Need for greater inclusiveness through scaled-up investment in training and social safety nets, enabling workers to upgrade skills and transition to higher-quality jobs.",
    "Evidence cited: experiences in Canada and Sweden show that on-the-job training is more effective than classroom learning.",
    "IMF roles:",
    "Summary objective: trade should be more services-based, more productive, and more inclusive so everyone can benefit.",
    "The postwar multilateral trade system has lifted hundreds of millions out of poverty and boosted incomes and living standards, but it needs improvement to adapt to the new era.",
    "Governments face issues not squarely covered by WTO rules, including various state subsidies, restrictions on data flows, and protection of intellectual property.",
    "Policy mechanisms suggested:",
    "Positive example: the Trans-Pacific Partnership, or TPP-11, for the first time in a broader trade agreement guarantees the free flow of data across borders for service suppliers and investors.",
    "Call to action: push for further trade reforms in a multilateral setting where rules are respected, countries work in partnership, and everyone is committed to fairness.",
    "Closing proposition: by building new economic bridges and shaping a new era of trade, we can foster more prosperous and more peaceful communities across the world.",
    "**建立一个更好的全球贸易体系; IMF博客; 2018 年5 月29 日**",
    "**より良い世界貿易システムをつくる;   クリスティーヌ・ラガルド, IMF ブログ 2018年5月29日掲載**",
    "**Mewujudkan Sistem Perdagangan Global yang Lebih Baik; IMF blog; 29 Mei 2018**",
    "**Создание лучшей системы мировой торговли; Кристин Лагард; Блог МВФ; 29 мая 2018 года**",
    "[عربي](http://www.imf.org/ar/News/Articles/2018/05/29/blog-creating-a-better-global-trade-system)",
    "[Português](https://www.imf.org/pt/News/Articles/2018/05/29/blog-creating-a-better-global-trade-system)",
    "[https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-bicycle-frame-MD-trade-Stephen-Lam-Newscom-rtrlnine943489.gif](https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-bicycle-frame-MD-trade-Stephen-Lam-Newscom-rtrlnine943489.gif)"
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