The relative impact of trade liberalization on developing countries

Résumé 0

"This paper sets out to initiate reflection upon the real costs of trade agreements.The authors believe that it is necessary to deflate grossly exaggerated claims about thebenefits of trade. They establish that very little would be gained if rich countries dismantledall their barriers to exports originating from developing countries. In factmany developing countries would no longer benefit from a fixed export volume soldat prices above competitive levels; trade terms would worsen; and agricultural exportssubsidies would be lost forever. Bearing this in mind, these countries wouldrisk their socio-political stability as a result of large-scale migrations of the ruralpopulation. Further liberalization would amount to costs as yet unconsidered, such asthe dire fiscal strait-jacket that would be required by countries losing income fromtariffs; the costs of the recent TRIPS provision within the WTO; and the opportunitycost of holding the exchange reserves that the developing nations would require toguarantee their macro-economic stability."