Managing Trade Policy During The Economic Crisis.pdfVIP

The World Bank J U L Y 2 0 0 9 notes N U M B E R 140 PREM TRADE POLICY Managing Trade Policy During The Economic Crisis Sebastian Saez, PRMTR The global economic crisis has triggered Moreover, the leaders expressed their rapid responses by governments worldwide commitment to a balanced conclusion of to counteract its domestic effects, through the Doha Development Round. fiscal stimulus packages, expansionary With the sharp decline in global mer- monetary policies, and financial bailouts. chandise trade volumes, expected to fall by Ad hoc trade policy measures are increas- 9 percent in 2009, countries have resorted ingly being put in place. All countries share to an array of measures to counter the the responsibility of preserving a stable detrimental effects of the crisis on their and predictable trade policy environment. respective economies (see Gamberoni and To this end, trade policies must contribute Newfarmer, 2009). Because this decline to maintaining an open trading system is a consequence of a deterioration of consistent with WTO principles. global demand, trade measures are not At their last meeting in London on an effective response to this problem. On April 2, 2009, national leaders of the the contrary, policies that contribute to an Group of Twenty (G-20) released a Joint