In the node: how to revive the global economy

As we awake from our collective covid nightmare, we are finding ourselves confronted by the new horror of a global economic depression. If we are to beat this new threat to our wellbeing, governments must work to stimulate economic growth. This is why the Global Economic Neural Network (GENN) yesterday teamed up with the Centre for Policy Studies for a webinar to discuss the potential for global cities, nodes and networks to power our recovery and lead us to a brighter future. Here are some initial thoughts:

 
Global Agreements and FTAs

When thinking about how to deliver economic growth, we have to understand the context for global economic policymaking.

If we are to progressively reduce trade barriers as well as government distortions around the world – and benefit from the wealth creation that will be derived as a result – then we have to ensure that we can pull all the levers possible to fire up global growth. A significant lever for the UK (but also for the world) is the newly independent trade policy agenda, and we have heard now from the Trade Secretary Liz Truss about negotiations with the US, Japan, Australia, New Zealand and accession to the Comprehensive and Progressive Trans Pacific Partnership (CPTPP).

These are all very important elements of a comprehensive trade policy strategy for the UK that will lead to significant global gains, as well as gains for the UK itself. The CPTPP is the most advanced platform trade agreement in the world in terms of ensuring a reduction not only in border barriers, but in ensuring that market distortions in all of its member markets are reduced.

Some have argued that the EU is the most comprehensive agreement of its kind, but while the EU does a reasonable job of lowering border barriers between its members and ensuring that member states’ regulations do not diverge (in goods more than in services), as a bloc it is increasing the level of distortion it presents to the rest of the world in a number of regulatory areas.

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Πηγή: capx.co