ABSTRACT
The 1995 establishment of the World Trade Organization (WTO) was the capstone of a gradual process of global trade liberalization that started after World War II. Average tariffs for many countries in 1950 were in the 20-30 percent range, complemented by a wide variety of non-tariff barriers (NTBs). As of 2010, the average level of import protection had dropped to the 5-10 percent range in most countries, reflecting a process of economic liberalization that started in the 1980s. In conjunction with technological changes that greatly reduced trade costs-telecommunications, the Internet, container - ization, and other improvements in logistics-these reforms led to a boom in world trade. The value of global trade in goods and services passed the US$20 trillion mark in 2011, or 59 percent of global GDP, up from 39 percent of GDP in 1990.
