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All countries that have had sustained growth and prosperity have opened up their markets to trade and investment.
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It is well established that by liberalising trade and capitalising on areas of comparative advantage, countries can benefit economically. Use of resources - land, labour, physical and human capital - should focus on what countries do best.
Who benefits from trade liberalisation?
Consumers ultimately benefit because liberalised trade can help to lower prices and broaden the range of quality goods and services available. Companies can benefit because liberalised trade diversifies risks and channels resources to where returns are highest. When accompanied by appropriate domestic policies, trade openness also facilitates competition, investment and productivity increases.
Is there a downside?
Trade reforms, even if beneficial for a country overall, may negatively affect some industries or some jobs and many commentators worry about negative effects on the environment. The solution to these problems is not to restrict trade. They should be tackled directly at source through labour, education and environmental policies.
What is OECD's role?
While many international, national and private organisations are involved in this type of research, the OECD through its multi-disciplinary approach, enjoys a distinct advantage in addressing the complex economic effects of trade liberalisation.
The OECD aims to create better understanding of how trade openness can best influence economies in member countries as well as in the major emerging and non-member economies.
See our latest news and reports on:
 Benefits of trade liberalisation
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