In the last half century, world trade has grown twice as fast as output and helped to lift the majority of the world's people from poverty — a feat unimaginable a generation ago. When APEC leaders meet in Honolulu next month, they will represent countries that account for half of world trade. Can APEC help to keep the engine humming for another half century?
The trade engine is more important than ever, but the rules that govern trade are less certain. Efforts to strengthen global rules — the World Trade Organization's Doha negotiations — have collapsed. Beset by domestic concerns, the United States and Europe have retreated from leadership on trade. And the new Asian giants have yet to step up.
This vacuum undermines investment and growth worldwide. For better or worse, it is now up to the U.S. and China, along with partners in the Asia-Pacific, to write the next chapter in the history of the world trading system — starting in Honolulu in November.