Welcome to the British Embassy's international trade portal! Our goal is to make this a useful and current resource for trade news, comment, analysis and UK policy positions. Check back often for new updates!

What's hot: links to new trade papers and analysis

(Trade Advocacy Groups) Letter to the President on trade policy   *   (DLC) More growth, less gridlock: Toward a new trade agenda   *   (VoxEU) Transatlantic trade in services   *   (VoxEU) NEW EBOOK The fateful allure of protectionism: Taking stock of the G8   *   (VoxEU) Demystifying the collapse in trade   *   (CFR) Geo-graphic: Collapse in world trade   *   (FAO) From Land Grab to Win-Win   *   (EU) Commission report on potentially trade-restrictive measures   *   (VoxEU) How many jobs are onshorable?   *   (WSJ) Milking Trade Subsidies   *   (Cato) Buy American Hurts Most Americans   *   (WTW) Four possible scenarios for the future of world trade   *   (WTW) UK Trade and Development policy paper   *   (USTR) Remarks by Ambassador Kirk at the US-China Business Council 2 June 2009   *   (Yale University) The End of the Globalization Debate?   *   (Brookings) Protectionism on the Rise   *   (AEI) The Global Problems with the GM Boondoogle

The state of international trade

This has been a difficult year for international commerce. The World Trade Organisation now estimates that global trade will contract by 10% in 2009, which will be the largest decline of the postwar multilateral era. Foreign direct investment flows are also collapsing: UNCTAD estimates that global inflows will decline by 50% this year. In a globalised world dependent on open markets and investment for prosperity, these figures are a stark reminder of the ongoing economic crisis.

Less global trade and investment means lost jobs in exports industries, diminished profits, fewer business opportunities abroad and lower tax revenues. It is a very tough situation but bad policy choices taken could make the outcome much worse. We have to continue to resist the temptation of protectionism, which becomes so much stronger during a downturn. History shows us the disastrous effects of turning inward when the economy is weak. Indeed, higher tariffs, restrictions on investment and other measures that aim to provide preference to domestic industry all risk prolonging the downturn.

Most recently at L’Aquila in July, and previously in London and Washington, global leaders have made strong commitments to resist protectionism and uphold an open international trading regime. As they also recognised, it is more important than ever that we complete the Doha Round. Doing so would provide a great boost of confidence in our rules-based and open international trade regime. It would bind tariffs at today’s levels or lower and could increase the global economy by $150 billion a year.

We must hold global leaders to their commitments and continue to work for a shared economic recovery. It is only through openness that we can ensure a return to prosperity.