Munich Personal RePEc Archive

Unequal exchange: developing countries in the international trade negotiations

Nogues, Julio (2004): Unequal exchange: developing countries in the international trade negotiations. Published in: The political economy of policy reform (Douglas Nelson ed.) (2004): pp. 295-327.

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The results of the Uruguay Round, show that the concessions given by developing countries were generally more valuable than those they received from industrial countries. I suggest that this outcome is explained by aggressive demands from industrial countries, and by the lack of resources at the disposal of developing countries. These and other ‘structural factors’ weaken the negotiating capacity of developing countries and the outcome of their bargaining is likely to be an ‘unequal exchange of concessions’. The chapter discusses the costs of these exchanges, and the structural factors that help to understand the processes leading to these outcomes.

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