Post-neoliberal globalization: international trade rules for global prosperity.

This paper examines the design of international trade rules under the assumption that a rule of law is possible, emphasizing the critical roles of market failures, endogenous technology, and political power. It argues that while free trade is optimal in a perfect market scenario without power imbalances, real-world deviations—such as market imperfections and power asymmetries—make trade agreements necessary and complex. The analysis highlights how existing trade rules, shaped largely by powerful countries, have constrained industrial policies in developing nations, contributing to global inequalities and limiting innovation, especially in addressing global public goods like climate change. The authors propose a normative framework advocating for more flexible trade rules that permit industrial policies, promote knowledge sharing, ensure fair global taxation, and accommodate evolving power dynamics to foster equitable growth and cooperation.