Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Friday, January 14, 2005

Trade Liberalization as Relief Aid

One of the best ways to aid developing countries, regardless of whether they were hit by the earthquake and tsunami, is to open the borders to their exports. The EU is doing this by speeding up the implementation of trade liberalization policies for Sri Lanka, India, Thailand, et al.:

"Under the new system Sri Lanka for example, will receive duty free access to the EU for almost all its GSP exports including on its vital textile and clothing exports. India, Indonesia and Thailand will benefit from reduced duties and wider product coverage, especially on crucial seafood exports"
Don't get excited by their generosity. All the EU is doing is speeding up the implementation of trade liberalization, which may not mean much if it is going to take months or years to rebuild the productive capacities of these countries.

Link supplied in a comment on Ben Muse's blog.
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