Economic news is grim all around the world. This year's output growth has been disappointing, and the International Monetary Fund expects only a slight improvement in 2015. Europe may be sliding back into recession, with even the once-robust German economy teetering on the brink. China is downshifting, and Brazil, Russia and India are struggling to avoid a stall.
So it is a pity that three important opportunities for growth from trade liberalization — the World Trade Organization's Doha Development Round, the Trans-Pacific Partnership (TPP) in the Asia-Pacific region, and theTransatlantic Trade and Investment Partnership (TTIP) between the United States and Europe — are being neglected. If designed properly, all three have the potential to spur global growth. Through the reduction of tariffs and non-tariff barriers, the protection of intellectual property and the harmonization of regulations, hundreds of billions of dollars of output — and millions of better-paying jobs — could be generated.
This is the lesson of the North American Free Trade Agreement (NAFTA), which celebrates its 20th birthday this year. In "NAFTA at 20," a book that I edited, policymakers and scholars explain how the landmark trade treaty exemplifies the benefits of trade liberalization — and why political leaders should pursue it.