The Washington Consensus Could Not Hold

Why It Matters

Council on Foreign Relations

News

4.2 • 876 Ratings

🗓️ 2 April 2025

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

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Summary

When it comes to trade, there is no consensus in Washington. The issue has become deeply polarizing, with lawmakers split over whether free trade agreements benefit or harm the U.S. economy. While some argue that open markets are essential for global leadership and economic growth, others believe that such policies disproportionately harm American workers and industries, fueling the rise of protectionist sentiment. This season, Why It Matters is taking you through the ins and outs of trade. In this episode, we’re examining how trade policy is sizing up to be anything but consensus. Featured Guests Shannon K. O’Neil, Senior Vice President, Director of Studies, and Maurice R. Greenberg Chair, CFR Edward Alden, Senior Fellow specializing in U.S. economic competitiveness, trade, and immigration policy For an episode transcript and show notes, visit us at https://www.cfr.org/podcasts/wim/washington-consensus-could-not-hold

Transcript

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0:00.0	So, Shannon, friend of the pod, welcome back to Why It Matters.
0:10.1	Before you came on, we were talking about how Washington Consensus sounds like a cocktail.
0:15.7	So if it was a cocktail, what would it be for you?
0:20.0	If Washington Consensus was a cocktail, it would be like a
0:25.1	ngroni. Oh, okay. Because you love nagronies or because you feel like it's a perfect analogy?
0:31.4	Because I don't mind the ngronies, but it's a little bit bitter, but it gives you a little bit of a kick, too.
0:36.4	Love it. Great.
0:49.4	The Washington Consensus is actually a list of Ten Commandments.
0:57.4	Ten widely agreed upon U.S. policy standards crafted in 1989 to guide the improvement of economic performance.
1:05.8	That really does feel like another era in which the prosperous United States was at the helm of global economic and political affairs,
1:08.6	and one of the lead champions of trade.
1:16.3	But at the start of 2025, trade is sizing up to be an arena of confrontation and anything but consensus, and is even raising concerns that a new protectionist era could spur a recession.
1:24.2	I'm Gabrielle Sierra, and this is why it matters.
1:30.3	Today, how can we agree on the rules of trade when the rules no longer apply? So last episode, we talked to your colleague
1:42.2	in mind, Ted Alden, about the history of our trade policy,
1:46.0	the 101 for this season about trade. But now we need your help to bridge us to today.
1:53.8	How much of our trade history or former trade policy is still relevant today?
2:00.2	Both much of it and none of it.
2:02.6	This is Shannon O'Neill.
2:04.6	She's the Director of Studies for CFR and a leading authority on global trade and supply chains.
2:10.6	We have seen a huge shift in just a couple of months in the way the U.S. government thinks about trade. That said, lots of
2:19.7	the tools that are being using today have been around for decades, if not centuries. Things like
	...

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