Globalizing the Trade Policy

Abstract

Globalization has been the most captivating and engulfing subject of the decade of 1990s. The impact of this subject has been such that it has brought about the new economic era. Even the breakup of the Former Soviet Union is considered the casualty of globalization. The competitive advantage of nations have led to the emergence of forces of globalization and WTO is the ultimate outcome of the era and globalization. Brettenwood philosophy and dictates do not rule the world, the new economic order that rules is the World Trade Organization and the dictates of Trade Policy that has emerged as ultimate outcome carrying a clout never perceived before. The global economy is now shaped by Trade Policy, which is the new leverage for political and economic policy direction. We are infact in need of a new rudder to steer the course of trade as the world has turned into a Boarderless World. For the first time the concept of Tailored Trade Policy have been understood and the value of tailoring the policy to suit and serve the cause of a nation. It has therefore become important to manage such a policy efficiently and suited to the interest of nation.

It is in this context the paper evaluates the evidence and evolves the reasoning to develop a market minded, trade policy. The question that the paper answers is “Is it necessary for us to understand trade policy of other countries? And does trade policy matter? The paper eventually answers and proves the Hypothesis to be correct and subscribes to the requirement of the Hypothesis of radical change. It believes in the maxim that “only the living nations live out the experience of change no matter how bold the change”.

The literature review covered a wide range of topics that are current to globalization, competitive advantage of nations, market orientation, national trade strategies, various theories of trade, all inclusive trade, and the current environment of discontinuity.

There was also a survey of selected countries to examine their policies and see the causes of their success or failure. This survey of trade policies of actively trading nations and their track record in view of macroeconomics and microeconomics policies is new ground breaking information in developing strategic policies. It also emphasizes the need to go radically and adopt a new kind of Ministry of Commerce – a market minded Ministry, and to select strategic industries to make them competitive. And above all to focus on developing Human Capital to man the Ministry.

V

The paper then goes on to recommend under the highly competitive environment, the need to adopt a policy of Trade Ambassador, Trade Academy and a Trade Bank. The final analysis of the paper is to have a globalized trade policy that is sensitive to development in the global environment, a policy that is sensitive to its trading partners and their trade policies and developing highly competent and highly knowledgeable ambassadors or territory commanders to bring the economic benefits to the nation through trade.