The Governor stresses the importance of sustaining the global momentum towards free trade-the foundation of post-war prosperity in the industrialised world. The benefits of protectionist trade barriers to individual sectors, he argues, must inevitably be outweighed in the long term by the damage caused by discouraging competition and the resulting misallocation of resources. In this context, the Governor highlights the need for the industrial world to retain its common purpose and to ensure a successful conclusion to the GATT talks. Failure, he warns, would risk reversing the trend towards free trade, which in turn would risk setting back economic prospects for the developing world and Central and Eastern Europe.
Published on
01 March 1992
Free trade and Europe