Trade is contributing to the economic recovery. But with high unemployment persisting in many countries, governments must resist protectionism, the organizations say. They underscored that a successful conclusion to the Doha Development Agenda would send a positive signal that governments continue to oppose protectionism and seek new opportunities for growth, development and job creation through trade.
The economic crisis showed how open economies are exposed to external shocks, the report adds. But openness to trade also helps economies recover more quickly as they are more adaptable and less dependent on limited domestic demand.
For open trade to boost growth and jobs on a sustained basis, complementary policies to address adjustment problems and distributional concerns are needed to help workers who may lose their jobs as a result of increased international competition. Relevant measures include stable macroeconomic policies, effective labor market and social protection policies, investment in education and enhancing export sectors in developing countries.
An open market frees countries from the constraints of their local economies, promotes greater efficiency and helps to develop and spread technological progress, the report says. These are key sources of longer-term gains in productivity and living standards.
