This paper develops a framework for analyzing the economic costs and benefits of unilateral and multilateral trade liberalization strategies. The interest in this topic is sparked by the apparent dilemma faced by some developing countries in the ongoing Uruguay Round of multilateral trade negotiations (MTNs). An active participation in the MTNs implies that what developing countries have to bargain away is worth something there. If so, it might pay to delay the introduction of unilateral measures in the hope of securing increased access to foreign markets. Deciding on the merits of unilateral and multilateral trade liberalization strategies should involve economic and political factors. This report addresses the economics of this decision and applies the framework to the case of Argentina.
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