The millennium round: An economic appraisal
AbstractThis paper combines both qualitative and quantitative economic analysis which shows that further multilateral trade liberalization through a WTO trade round could yield significant benefits for the global economy. The qualitative analysis restates the economic case for further multilateral trade liberalization, pointing out that trade has served as one of the engines of the global economy and that trade liberalization is a positive-sum game, whereas trade barriers generate significant welfare costs for countries which introduce them. It also highlights the role which trade liberalization can play in raising the growth prospects of the developing countries. The quantitative analysis reports results from a global computable general equilibrium (CGE) model. It is estimated that a 50 per cent across-the-board cut in global protection in all agricultural, industrial and services sectors coupled with a modest reduction in trade costs from a WTO agreement on trade facilitation could lead to annual welfare gains of around $400 billion for the world economy. In addition, a WTO agreement on competition could generate an annual welfare gain of approximately $85 billion. The study also refers to an independent and conservative estimate of a $75 billion annual windfall from a WTO agreement on investment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 139.
Length: 43 pages
Date of creation: Nov 1999
Date of revision:
Contact details of provider:
Postal: Coomunivcations Unit, B-1049 Bruxelles / Brussels
Fax: +32 2 298.08.23
Web page: http://ec.europa.eu/economy_finance/index_en.htm
More information through EDIRC
wto; trade liberalisation; world trade organisation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hess, Sebastian, 2005. "An Econometric Model of CGE Simulations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24713, European Association of Agricultural Economists.
- Jacques-Bernard Sauner-Leroy, 2003. "The impact of the implementation of the Single Market Programme on productive efficiency and on mark-ups in the European Union manufacturing industry," European Economy - Economic Papers 192, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ECFIN INFO).
If references are entirely missing, you can add them using this form.