Economic growth and international trade growth have been sluggish following the global financial crisis. Current projections indicate that growth may continue to be sluggish in the medium term. These continuing trends will limit the income-raising productivity growth needed to maintain and improve living standards with populations ageing across many economies. It will also limit capacities to raise living standards amongst lower-income regions. Gaining public acceptance of productivity-improving policies and the contribution that trade openness makes, however, is getting harder due to re-emerging national protectionist sentiment. This note looks at possible ways to improve trade policy formulation at national, regional and global levels through evidence to bolster the case for greater openness and economic reform. Growth could be revived if G20 countries act to implement deeper and wider trade and economic reforms, and avoid policies that limit productivity growth prospects.

Paul Gretton, Crawford School and Centre of European Studies, ANU; formerly at Australian Productivity Commission.