12/11/2010 - Open markets play a pivotal role in supporting growth and job creation, says a new 
joint report by the OECD, the International Labor Organization, the World Bank and the 
World Trade Organization. But, it adds, trade opening must be complemented by properly 
designed domestic policies, including employment and social protection policies to ensure 
that benefits from trade are widely shared.

Seizing the Benefits of Trade for Employment and Growth, presented to Leaders at the 
G20 Summit in Seoul on 11-12 November 2010, argues that more open trade for goods 
and services can provide a stimulus for the world economy, at a time when many of the 
temporary stimulus measures taken by many governments during the crisis are being unwound.

Trade is contributing to the economic recovery. But with high unemployment persisting in 
many countries, governments must resist protectionism, the organizations say.  They 
underscored that a successful conclusion to the Doha Development Agenda would send 
a positive signal that governments continue to oppose protectionism and seek new 
opportunities for growth, development and job creation through trade.

The economic crisis showed how open economies are exposed to external shocks, 
the report adds. But openness to trade also helps economies recover more quickly 
as they are more adaptable and less dependent on limited domestic demand. 

For open trade to boost growth and jobs on a sustained basis, complementary policies 
to address adjustment problems and distributional concerns are needed to help workers 
who may lose their jobs as a result of increased international competition. Relevant 
measures include stable macroeconomic policies, effective labor market and social 
protection policies, investment in education and enhancing export sectors in developing countries.

An open market frees countries from the constraints of their local economies, promotes 
greater efficiency and helps to develop and spread technological progress, the report says. 
These are key sources of longer-term gains in productivity and living standards.

The report by the four organizations was requested by G20 leaders at their 
Toronto Summit in June 2010.


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