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Issues of Manufactures Liberalization and Administered Protection in the Doha Round


  • Deardorff Alan V

    () (University of Michigan)

  • Stern Robert M

    () (University of Michigan)


This article focuses especially on the positions that the developing countries should take in their own interests on the issues of manufactures liberalization and administered protection. A series of recommendations are set forth with supporting argument: (1-2) for market access, both developed and developing countries should commit to reducing their most restrictive trade barriers, using a formula approach with limited exceptions; (3) negotiated tariff reductions should be phased in over a period of ten years in equal incremental installments; (4) adjustment assistance should be provided by a system of wage insurance and subsidized by transfers from developed countries; (5) the rules for safeguards, countervailing duties, and anti-dumping should be redrafted to focus their use on cases of legitimate economic justification and to discourage their use as protectionist devices; (6) the U.S. and EU should devise and implement a program of comprehensive but declining import restrictions on imports from China consistent with Chinas terms of WTO accession and eliminated by 2008; (7) WTO rules governing Preferential Trading Arrangements should be revised to insure that they contribute to the liberalization and simplification of the multilateral trading system; (8) preference granting countries should provide assistance to countries experiencing the erosion of preferences due to multilateral liberalization; (9) the WTO system of dispute resolution should remain in place; and (10) special and differential assistance, if granted, should not exempt countries from the provisions for their own market liberalization.Developing countries should participate actively and constructively in the negotiations to further their own interests. Developing countries may be at a disadvantage in the negotiating process, due to their resource limitations and inexperience in negotiations. Offsetting such disadvantages, however, are their large numbers and the compelling case for meeting their needs. What is needed is leadership and cooperation as for example with the Group of 20 and other coalitions together with a willingness to listen and be flexible on the part of their developed country counterparts.Alan V. Deardorff is John W. Sweetland Professor of International Economics and Professor of Economics and Public Policy at the University of Michigan. He received his Ph.D. in economics from Cornell University in 1971 and, since 1970, has been on the faculty at the University of Michigan where he served as Chair of the Economics Department from 1991 to 1995. He is co-author, with Robert M. Stern, of The Michigan Model of World Production and Trade and Computational Analysis of Global Trading Arrangements and has published numerous articles on aspects of international trade theory and policy. His work on international trade theory has dealt primarily with theories of the patterns and effects of trade. With Professor Stern and with Professor Drusilla K. Brown he has developed a series of computable general equilibrium models of world production, trade, and employment that have been used to analyze the effects of both multilateral and regional initiatives for trade liberalization. Deardorff's current research interests include: the causes and effects of international fragmentation, the economic effects of free trade areas, and the role of trade costs in determining patterns of international specialization and trade.Robert M. Stern is Professor of Economics and Public Policy (Emeritus) in the Department of Economics and Gerald R. Ford School of Public Policy at the University of Michigan, Ann Arbor.

Suggested Citation

  • Deardorff Alan V & Stern Robert M, 2005. "Issues of Manufactures Liberalization and Administered Protection in the Doha Round," Global Economy Journal, De Gruyter, vol. 5(4), pages 1-12, December.
  • Handle: RePEc:bpj:glecon:v:5:y:2005:i:4:n:7

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    References listed on IDEAS

    1. Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "The revived Bretton Woods system," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 307-313.
    2. Maurice Obstfeld & Kenneth Rogoff, 2007. "The Unsustainable U.S. Current Account Position Revisited," NBER Chapters,in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 339-376 National Bureau of Economic Research, Inc.
    3. Ashima Goyal & Ankita Agarwal, 2005. "Risk and Asian Exchange Rate Regimes," Global Economic Review, Taylor & Francis Journals, vol. 34(3), pages 321-329.
    4. Michael P. Dooley & David Folkerts-Landau & Peter M. Garber, 2005. "An essay on the revived Bretton Woods system," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    5. Ronald Jones; Henryk Kierzkowski; Chen Lurong, 2004. "What does the evidence tell us about fragmentation and outsourcing," IHEID Working Papers 09-2004, Economics Section, The Graduate Institute of International Studies.
    6. Barry Eichengreen, 2010. "Global Imbalances and the Lessons of Bretton Woods," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262514141, July.
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    Cited by:

    1. Kelly Brian D, 2011. "The Offsetting Duty Norm and the Simultaneous Application of Countervailing and Antidumping Duties," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-33, July.

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General


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