Governments should turn back the clock over trade policy

Policymakers could do worse than return to formula of negotiating reciprocal elimination of tariffs

The "bicycle theory" used to be a metaphor for international trade policy. Just as standing still on a bicycle is not an option - one must keep moving forward or else fall over - so it was said that trade negotiators must engage in successive rounds of liberalisation. Otherwise, global openness would gradually succumb to protectionist interests.

I don't know whether the theory was right. In fact, had governments stood still on trade policy over the last three years, the world would be a lot better off than it is now. Trade is faltering - global volumes are down a remarkable 1.1% over the last 12 months - as inept bikers collide chaotically with one another.

Related: The IMF is losing influence - and for that it must share the blame