Kevin Gallagher: Making trade work

Barack Obama's stance on free trade is in line with reputable economists who argue that it hinders development.

Recent work by leading economists suggests that a new consensus is emerging on free trade agreements. Gone is the doctrine of the Washington consensus which preached signing trade deals with any nation that is willing. A narrow but significant accord is emerging that says smaller regional and bilateral trade agreements are bad for the world economy. Perhaps then, Senator Barack Obama's call to rethink deals like Nafta is not so protectionist but really in line with contemporary economic thinking.