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On the Virtues of Multilateral Trade Negotiations

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  • Kym Anderson

    (World Bank)

Abstract
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. This paper surveys recent estimates, using global economy-wide simulation models, of the benefits of reducing remaining distortions via 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 worldÂ’s poorest people. Opportunities to reduce remaining distortions, including via the WTOÂ’s Doha Development Agenda as compared with sub-global preferential reform, are examined, before drawing out the implications of liberalization for poverty and the environment.

Suggested Citation

  • Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," Centre for International Economic Studies Working Papers 2005-15, University of Adelaide, Centre for International Economic Studies.
    • Handle: RePEc:adl:cieswp:2005-15
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    Cited by:

    1. Kym Anderson & Will Martin & Dominique Mensbrugghe, 2010. "China, the WTO and the Doha Agenda," Palgrave Macmillan Books, in: David Greenaway & Chris Milner & Shujie Yao (ed.), China and the World Economy, chapter 1, pages 1-18, Palgrave Macmillan.
    2. Moon, Wanki, 2011. "Is agriculture compatible with free trade?," Ecological Economics, Elsevier, vol. 71(C), pages 13-24.
    3. Philipp Maier, 2008. "A Wave of Protectionism? An Analysis of Economic and Political Considerations," Staff Working Papers 08-2, Bank of Canada.
    4. 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.
    5. Piermartini, Roberta & Teh, Robert, 2005. "Demystifying modelling methods for trade policy," WTO Discussion Papers 10, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. 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.
    7. Moon, Wanki, 2010. "Multifunctional Agriculture, Protectionism, And Prospect Of Trade Liberalization," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 33(2), pages 1-33, July.

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    More about this item

    Keywords

    Trade policy reform; subsidy reduction; Doha Development Agenda.;
    All these keywords.

    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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