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On the Virtues of Multilateral Trade Negotiations




Phasing out distortionary government subsidies and barriers to international trade will yield extraordinarily high benefits relative to any adjustment costs, notwithstanding the considerable reforms that have already taken place over the past two decades. The present paper surveys recent estimates, using global economy-wide simulation models, of the benefits of reducing remaining distortions by means of unilateral reform, multilateral trade negotiations and preferential trading arrangements. Distortionary trade policies harm most the economies imposing them, but the worst of them (in agriculture and clothing) are particularly harmful to the world's poorest people. Opportunities to reduce remaining distortions, including by means of the WTO's Doha Development Agenda as compared with subglobal preferential reform, are examined, before drawing out the implications of liberalisation for poverty and the environment. Copyright 2005 The Economic Society Of Australia.

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  • Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
  • Handle: RePEc:bla:ecorec:v:81:y:2005:i:255:p:414-438

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    References listed on IDEAS

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    Cited by:

    1. Reza Siregar & Ramkishen Rajan, 2006. "Models of Equilibrium Real Exchange Rates Revisited: A Selective Review of the Literature," Centre for International Economic Studies Working Papers 2006-04, University of Adelaide, Centre for International Economic Studies.
    2. Moon, Wanki, 2010. "Multifunctional Agriculture, Protectionism, And Prospect Of Trade Liberalization," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 33(2), July.
    3. Moon, Wanki, 2011. "Is agriculture compatible with free trade?," Ecological Economics, Elsevier, vol. 71(C), pages 13-24.
    4. Philipp Maier, 2008. "A Wave of Protectionism? An Analysis of Economic and Political Considerations," Staff Working Papers 08-2, Bank of Canada.
    5. Howard, Sam & Gow, Hamish R. & Ozer-Balli, Hatice, 2011. "New Zealand's Preferential Trading Arrangements: Implications for the New Zealand Dairy Industry," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115405, New Zealand Agricultural and Resource Economics Society.
    6. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2007. "China, the WTO, and the Doha Agenda," Centre for International Economic Studies Working Papers 2007-02, University of Adelaide, Centre for International Economic Studies.

    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation


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