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31

should work to revive the multilateral

trade regime’s legitimacy rather than

squelching it. The way to achieve that,

however, is not to further open markets

and tighten global rules on trade and

investment. Barriers to trade in goods

and many services are already quite low.

The task is to ensure greater popular

support for a world economy that is

open in essential respects, even i it falls

short o the hyperglobalist ideal.

Building that support will require

new international norms that expand

the space for governments to pursue

domestic objectives. For rich countries,

this will mean a system that allows

them to reconstitute their domestic

social contracts. The set o rules that

permit countries to temporarily protect

sensitive sectors from competition

badly needs reform. For example, the

 allows countries to impose tempo-

rary tari s, known as antidumping

duties, on imports being sold by a

foreign company below cost that

threaten to harm a domestic industry.

The  should also let governments

respond to so-called social dumping, the

practice o countries violating workers’

rights in order to keep wages low and

attract production. An anti-social-

dumping regime would permit coun-

tries to protect not merely industry

pro€ts but labor standards, too. For

developing countries, the international

rules should accommodate governments’

need to restructure their economies to

accelerate growth. The  should also

loosen the rules on subsidies, invest-

ment, and intellectual property rights

that constrain developing countries’

ability to boost particular industries.

I China and the United States are to

resolve their trade con†ict, they need to

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