The world of public policy is beginning to rethink the impact of global trade in the 21st century. There are several forces at work. Established competitors are actively attempting to adopt and adapt the U.S. approach to innovation. The rise of China, India, and the countries of the former Soviet Union's sphere of influence have created a new set of competitors that increasingly combine advanced manufacturing or services with very low wages. The spread of the digital economy and the increased availability of broad band capacity have brought international competition to a growing array of services.

This conference was the first in a two-part series looking at global competition and new thinking in international trade. Panelists and participants focused on the impact of overseas innovation on U.S. comparative advantage and the potential gains from trade. In addition to Paul A. Samuelson's 2004 article in the Journal of Economic Perspectives, this conference explored the evolution of the thinking of Ralph E. Gomory and William J. Baumol since their 2000 publication of Global Trade and Conflicting National Interests. The panelists also looked closely at the policy implications of the new thinking for trade negotiations with advanced and developing countries.

To watch the video of the conference, please follow the link in the See Also box to the right of this screen beginning on Friday, June 16.


1:00 PM Registration

1:15 PM Introductory Remarks

Senator Paul Sarbanes

1:30 PM Global Trade, Conflicting National Interests, and
Comparative Advantage

William Baumol, Professor of Economics and Academic Director of the Berkley Center for Entrepreneurial Studies, New York University
Ralph Gomory, President, Alfred P. Sloan Foundation
Paul Samuelson, Institute Professor Emeritus, Massachusetts Institute of Technology

2:45 PM Implications for Economic and Trade Policy

Stephen Roach, Managing Director, Research, Global Economics and Chief Economist, Morgan Stanley

3:00 PM Discussion

3:45 PM Coffee and Conversation

4:00 PM Implications for Economic and Trade Policy

Chair: Paul Solman, The NewsHour with Jim Lehrer
Edward M. Graham, Senior Fellow, Institute for International Economics
Thomas Palley, former Chief Economist, U.S.-China Economic and Security Review Commission
Clyde Prestowitz, President, Economic Strategy Institute
Phillip L. Swagel, Resident Scholar, American Enterprise Institute

4:45 PM Discussion

5:30 PM Reception