Information about the organization
THE 10 BENEFITS: 6. Incomes
6.
Trade raises incomes

Lowering trade barriers allows trade to increase, which adds to incomes — national incomes and personal incomes. But some adjustment is necessary.


THE 10 BENEFITS
1. Peace
2.
Disputes
3.
Rules
4.
Cost of living
5.
Choice
6. Incomes
7. Growth and jobs
8.
Efficiency
9.
Lobbying
10.
Good government
  

See also:
The WTO in Brief
10 misunderstandings
Understanding the WTO


Resources are available for redistribution

 

 

The fact that there is additional income means that resources are available for governments to redistribute

 

The WTO’s own estimates for the impact of the 1994 Uruguay Round trade deal were between $109 billion and $510 billion added to world income (depending on the assumptions of the calculations and allowing for margins of error).

More recent research has produced similar figures. Economists estimate that cutting trade barriers in agriculture, manufacturing and services by one third would boost the world economy by $613 billion — equivalent to adding an economy the size of Canada to the world economy.

In Europe, the EU Commission calculates that over 1989–93 EU incomes increased by 1.1–1.5% more than they would have done without the Single Market.

So trade clearly boosts incomes.

Trade also poses challenges as domestic producers face competition from imports. But the fact that there is additional income means that resources are available for governments to redistribute the benefits from those who gain the most — for example to help companies and workers adapt by becoming more productive and competitive in what they were already doing, or by switching to new activities.

 
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