Protectionism should not be blamed for job losses – technology and innovation are having a far bigger impact on the structure of labour, says World Trade Organisation director-general, Roberto Azevedo.
“Studies suggest that around 80% of job losses in advanced economies are due to technology and innovation. Almost 50% of existing jobs in some developed countries are at high risk of automation today. And the number is higher in many developing countries.
“Like trade, technological progress is indispensable for sustained growth and development. So the answer is not to reject these forces. We must embrace them and learn to adapt.”
He stresses that protectionism will not solve the challenges we face — in fact it would make them worse.
“An OECD study showed that each dollar of increased protection leads to a drop of 66 cents in GDP.”
Raising trade barriers is also costly for consumers.
A UCLA-Columbia study estimated that if borders were closed to trade, poorer consumers, who pay a greater portion of their earnings on clothing, food and consumer electronics, could see their spending power fall by 63%.
“Moreover, trade barriers raised by one party lead to a response — and a potential domino effect.”
