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Globalizing Free Trade: The Ascent of Regionalism

C. Fred Bergsten
May/June 1996
Summary: 

Regional trade blocs, which account for 60 percent of world trade, have opened markets, but they cannot substitute for worldwide reciprocity. To prevent free trade from remaining their privilege alone, rich Northern countries should strike a bargain with poorer ones: low tariffs for greater market access. The grander the initiative, the greater the chance of success, particularly now that the United States is in danger of backsliding. Since export industries offer higher pay and more stable jobs, a firm date for free trade can solve America's most pressing problem, stagnating wages and the attendant social ills.

C. Fred Bergsten is Director of the Institute for International Economics. Since 1991 he has chaired the Competitiveness Policy Council created by Congress and, from 1993 to 1995, the Eminent Persons Group that advised the Asia-Pacific Economic Cooperation forum.

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