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But the other key question is: how can we work together to make openness sustainable?

What role can multilateral cooperation play towards this goal? Its importance becomes clear when one thinks about the three main areas of concern that people have about open markets that I mentioned earlier.

There are a number of areas in which domestic policies can encourage an upward shift in productivity growth, such as competition, research and development, and insolvency regimes.

But when thinking about the economy, one of the key ingredients for raising productivity is openness.

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One of the main reasons why multilateral institutions exist is to create regulatory convergence, and therefore to increase trust between countries.

Slower growth will in turn make it harder to work through the debt and demographic challenges facing many advanced economies.

With the population growth rate in those economies projected to slow, the burden of raising potential growth must fall on productivity.

Given the established gains of trade, this is plainly a concerning trend for the global economy.

International trade results in a more efficient use of production factors and in specialisation where comparative advantage exists, thereby raising productivity growth.




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