The so-called preachers and pioneers of free trade, the US and the European Union, are now more adamant on keeping their non-trade barriers and subsidies. The developing countries in the process of trade liberalization are fighting to take down some of those barriers. What are the consequences of such a role-reversal?

The world has changed considerably since the General Agreement of Tariffs and Trade (GATT) was initially adopted and even more so since its later incorporation into the World Trade Organization (WTO). A world economy that was once characterized by high tariffs and non-trade barriers is now cluttered with regional "Free Trade Agreements." Policymakers who call for protection of domestic industry are frequently, but not always, criticized as antiquated figures that belong in a museum devoted to Dependency Theory, Marxism, and other social/economic theories the world has long since forsaken.

While these changes have been important, they are not always regarded very favorably as the failure of the recent WTO meeting in Cancun underscores. During those fateful days the news did not emanate from the streets of the resort city. Whereas in the past, international economic meeting headlines were dominated by "anti-globalization" protesters in places like Seattle or Washington, the news from Cancun actually turned towards the fireworks from within the meeting itself. At that conference, the rift between preaching free trade and practicing free trade flared into the open and the global discussion reverted to the old scheme. Third World countries united again under the banner of the `Group of 21', while the European Union and the United States loosely supported each other in a counter effort, inadvertently representing both new and old super economies.

World Trade, Preachers, practitioners, trade, US, European Union, non-trade barriers, subsidies, developing countries, trade liberalization, barriers, liberalization, business environment, General Agreement of Tariffs and Trade (GATT), World Trade Organization (WTO), Policymakers, domestic industry, social/economic theories, anti-globalization, preaching free trade and practicing free trade, global discussion.