The word 'protection' is no longer taboo." this short sentence, uttered by French President Nicolas Sarkozy late last month, may have launched a new era in economic history. Why? For decades, Western leaders have believed that lowering trade barriers and tariffs was an inherent good. Doing so, they reasoned, would lead to greater economic efficiency and productivity, which in turn would improve human welfare. Championing free trade thus became a moral, not just an economic, cause.

These leaders, of course, weren't acting out of altruism. They knew their economies were the most competitive, so they'd profit most from liberalization. And developing countries feared that their economies would be swamped by superior Western productivity. Today, however, the tables have turned--though few acknowledge it. The West continues to preach free trade, but practices it less and less (especially in agriculture; this is why the Doha Round of trade talks is dying). Asia, meanwhile, continues to plead for special protection but practices more and more free trade. China and India have lowered tariffs significantly.

That's why Sarkozy's words were so important: he finally injected some honesty into the trade debate. The truth is that ...