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Developing countries and the next round of multilateral trade negotiations


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  • Krueger, Anne O.
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    Developing countries became full-fledged participants in multilateral trade negotiations only with the Uruguay Round, during which they succeeded in bringing agriculture into the GATT/WTO, reaching agreement on phasing out the Multi-Fibre Arrangement within ten years, and beginning work on services, among other things. Their overriding interest in the new round is still to ensure the healthy expansion of an open multilateral trading system. Developing countries should seek across-the-board liberalization rather than zero-for-zero reductions, which tend to favor the interest of industrial countries (which focus on sectors in which they have comparative advantage) and diminish the support for further cuts. Liberalization of agricultural trade provides important opportunities. Developing countries have a considerable stake in reducing agricultural protection and subsidies and prohibiting agricultural taxes and export quotas. Of particular interest are agreements covering services - including, for example, agreements on ways to permit the temporary immigration of construction workers. It is important that labor standards not be used to stifle competition from labor-abundant developing countries - that any agreement about labor standards not raise the costs of unskilled labor in countries whose comparative advantage lies in exported products that use unskilled labor extensively - and that excessively high product standards not be imposed. Developing countries can increase their leverage substantially by forming coalitions based on common interests in a wide range of areas (as the Cairns group did in the Uruguay Round).

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    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2118.

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    Date of creation: 31 May 1999
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    Handle: RePEc:wbk:wbrwps:2118

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    Keywords: Economic Theory&Research; Economic Conditions and Volatility; Labor Policies; Environmental Economics&Policies; Payment Systems&Infrastructure; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Achieving Shared Growth; Poverty Assessment; Environmental Economics&Policies; Economic Theory&Research;

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    Cited by:
    1. Bernard Hoekman & Will Martín, 1999. "Some Market Access Issues for Developing Countries in a Millennium Round: Results from Recent World Bank Research," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 36(109), pages 947-978.
    2. Otchere, Isaac, 2007. "Does the response of competitors to privatization announcements reflect competitive or industry-wide information effects? International evidence," Journal of Empirical Finance, Elsevier, vol. 14(4), pages 523-545, September.
    3. Archana S Mathur, 2010. "External Economic Situation In India - Recent Trends and Policy Implications," Working Papers id:3077, eSocialSciences.
    4. Adam McCarty, 2001. "Globalisation and Human Development," International Trade 0110001, EconWPA.
    5. Di Caprio, Alisa, 2004. "Does the new international trade regime leave room for industrialization policies in the middle-income countries?," ILO Working Papers 371235, International Labour Organization.
    6. Di Caprio, Alisa & Amsden, Alice, 2004. "Does the new international trade regime leave room for industrialization policies in the middle-income countries?," ILO Working Papers 370951, International Labour Organization.


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