International Trade Secretary, today hailed the ‘immediate and
tangible’ benefits that will arise as the UK works to establish
itself as a global champion of free trade.
Addressing academics, policy makers and business representatives
at the launch of the Department for International Trade sponsored
e-book ‘Cloth for Wine? The
relevance of Ricardo’s Comparative Advantage in the 21st
Century’ he asserted his confidence that the best days of
global trade lie ahead.
The publication produced by the Centre for Economic Policy
Research (CEPR) and sponsored
by DIT is a collection of essays marking the 200th anniversary of
David Ricardo’s principle of comparative advantage.
Using the simple example of trading English cloth for Portuguese
wine, Ricardo explained how all actors, at all times, can
mutually benefit from commercial cooperation and voluntary trade.
Whilst a radical idea at the time, this insight generated the
basis for international trade today.
Outlining his ambition to make the UK the world’s foremost
champion of free trade, Dr Fox explained how 200 years on,
Ricardo’s transformative insight still holds true for the modern
global economy and will remain crucial to securing future UK
prosperity and growth.
In his speech, Dr Fox said:
As an international economic department, our ambition is to
make the UK the world’s foremost champion of free trade,
upholding those principles developed by David Ricardo, Adam
Smith and others, to generate wealth and spread prosperity
across the globe.
By realising this ambition, the benefits to this country will
be immediate and tangible. The best days of global trade lie
ahead of us.
Opening a series of panels with participants from
the OECD, TUC and
leading universities on comparative advantage and trade in the
21st century, Dr Fox highlighted the vital role collaboration
will play in developing a successful future trade policy, and the
importance of drawing upon expertise and experience from across
government, industry and academia.
The DIT and CEPR e-book
fields contributions from prominent trade academics across the
globe such as former President of Mexico, Ernesto Zedillo, and
Penn State distinguished professor of economics Jonathan Eaton,
and examines Ricardo’s theory through a contemporary lens,
including its relevance for digital trade, the growth of trade in
services, and the impact of automation on the labour force.
CEPR Fellow,
Chad Bown said:
The current policy climate demands a more reasoned discourse
around the topic of globalisation. This volume brings together
a tight-knit and yet sophisticated analysis that shows off the
fundamental principles of comparative advantage as well as the
nuance of its implications for policy today.
