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Common values for the development round

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  • STIGLITZ, JOSEPH E.
  • CHARLTON, ANDREW H.

Abstract

In the traditional theory of international trade, multilateral trade agreements should be easy because self-interested governments unilaterally commit to reduce their own protection and, as a bonus, they reap positive externalities from liberalization by other nations. In practice national governments do not behave as though they are maximizing the welfare of a representative citizen, but instead they respond to pressure from a diverse mix of constituencies and competing special interests. Governments attempt to manage domestic trade-offs within international negotiations, so progress is slow and protection persists. The practical operation of trade negotiations, emblemized by the infamous green rooms , is characterized by factionalism, horse-trading, and brinkmanship.

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Bibliographic Info

Article provided by Cambridge University Press in its journal World Trade Review.

Volume (Year): 3 (2004)
Issue (Month): 03 (November)
Pages: 495-506

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Handle: RePEc:cup:wotrrv:v:3:y:2004:i:03:p:495-506_00

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