In April this year, the World Trade Organisation (WTO) forecast global trade growing at 2.8% in 2016 and 3.6% in 2017. US too has gained immensely after the establishment of North American Free Trade Agreement (NAFTA) and World Trade Organisation (WTO) in the 90s and after China’s accession to WTO in 2001. It is therefore not surprising that free trade typically favours the poor, who spend more on average on traded goods. That said, there is also some truth to the claim that free trade has resulted in rising inequality. Reforming these structural, non-tariff barriers to bilateral or multilateral trade is therefore crucial for any successful leveraging of trade benefits.

Source: Mint October 08, 2016 03:45 UTC