The WTO risks losing its centricity in the world trading system due to its focus on 20th century trade issues and lack of progress in the Doha Round. This column introduces a new eBook that looks at how Asia meanwhile built a deep network of supply chains and is experimenting with new forms of regional trade governance. Asia’s experience of open trade-led development offers lessons for other regions. Better coherence is also vital between Asia’s regional trade rules and global trade governance.

Free trade agreements are often signed in conjunction with other bilateral economic agreements such as investment agreements, double taxation treaties, or even currency agreements. This column argues that this trend reflects the greater complexity of 21st century economic integration – especially the intertwining of FDI and trade in goods and services. Economists should analyse the effects of all such agreement conjointly. Failing to do so may result in attributing trade booms to the wrong policies.

The first order of business for the next Director-General of the WTO will be to help broker a deal at the Ministerial Meeting in Bali next December. Following the announcement of reductions in tariffs on environmental goods announced by APEC members last September, there is some hope that a deal might be in hand for a reduction in trade barriers on environmental goods and services. This column reviews the stalemate so far and argues that with little to put on the table, progress at the multilateral level is unlikely.

The WTO is looking for a new Director-General. The process, which is remarkably open and public, has nine candidates. This column introduces a new VoxEU eBook in which seven of the candidates lay out their views on the challenges confronting the WTO and how to address them. Taken together, they provide a uniquely comprehensive view of the world’s trade governance problems. It will be an important reference long after the selection process ends.

For most of the postwar period, rich nations had much lower average tariffs than developing nations, but they frequently applied variable protection – dumping duties etc. – in reaction to business cycles and exchange-rate movements. Massive, unilateral tariff-cutting by developing nations since the 1990s evened out the averages. This column presents new evidence that emerging economies are now tying variable protection more closely to business cycles and exchange rates – just like the high-income economies.

Trade agreements have become ‘deeper’ over recent years, and there are initiatives in the pipeline to globalise deeper trade governance through mega-regional agreements (such as the Trans-Pacific Partnership). This column argues that trade agreements in general – and the WTO in particular – should focus on what they do best, reducing protectionist barriers. Broader issues such as intellectual property and regulatory expropriation should be left to governments to deal with on their own. Governments that handle these issues most effectively will be the winners in the new world of supply-chain trade.

The West perennially complains about China subsidising industry geared towards its domestic market. But what will happen when China enacts its latest Five Year Plan’s emphasis on domestic growth? This column argues that ending ‘pure-exporter subsidies’ – subsidies that boost Chinese exports while simultaneously protecting the least efficient, domestically oriented firms – will benefit Chinese consumers, but will cost the rest of the world.

CEPR Policy Insight No 64 argues that adapting world trade governance to the realities of supply-chain trade will require a new organisation – a WTO 2.0 as it were.

Globally, large current account imbalances prevail. This column argues that they also continue to represent a systemic risk for the world economy. The WTO has a clear-cut role in the institutional effort to address these imbalances. However, this role has more to do with opening services and government procurement markets than with the often invoked trade sanctions in response to exchange rate misalignments.