The Productivity Commission (PC) has issued a warning that the world’s trading system is under its greatest strain since the 1930s and could no longer be taken for granted.
Chair of the PC, Michael Brennan said protectionist sentiment was once again on the rise around the world.
“Unfortunately, we are seeing the language of market gain give way to the language of strategic rivalry, resulting in unpredictable trade policy,” Mr Brennan said.
“This is bad for business and bad for jobs,” he said.
“The single most important step Australia can take in the face of mounting troubles in the world trading system is to keep our own borders open to trade and investment.”
He said the certainty of a rules-based trading system was of immense benefit to Australia and was a pillar of a strong global economy.
Productivity Commissioner, Jonathan Coppel agreed, saying the system had helped to underpin 27 years of growth in Australia and to lift a billion people out of poverty around the world.
“The importance of strengthening in an even-handed manner the rules-based system governing international trade cannot be underestimated,” Commissioner Coppel said.
Mr Brennan said Australia should continue to work with other countries to build consensus on how to resolve long-standing and escalating challenges facing the World Trade Organisation (WTO).
The Commission’s 136-page report can be accessed at this PS News link.
