Concluding remarks on policy orientation

Trade reforms have contributed to reducing income inequality between countries. They have, however, also been accompanied by a polarization of the distribution of income within many countries. The latter is possibly the main cause behind the current backlash against international trade. Resorting to protectionism to reduce trade is not a solution to addressing the adverse distributional consequences of trade. Trade is a catalyst for economic growth and development as recognized in the SDGs. Accordingly, to respond to inequality, rather than focusing exclusively on productivity and economic growth, policymakers need to focus on encouraging trade and on ensuring that the benefits brought by international trade must become more inclusive and responsive to the imperatives laid out in the Sustainable Development Goals.

Sustainable Development Goals:

Gender Equality

Decent Work and Economic Growth

Reduced Inequalities