Trade Policy and Market Access Issues for Developing Countries : Implications for the Millennium Round

An analysis of developing countries' current trade policies and market access problems is used as a basis for recommending positions for these countries in the new round of multilateral negotiations under the World Trade Organization.Michalopoulos analyzes 61 trade policy reviews prepared for the World Trade Organization (WTO) and its predecessor, GATT - reviews that document the progress developing countries have made in integration with the world trading system over the past decade. Based on an analysis of post-Uruguay Round tariff and nontariff barriers worldwide, he then recommends developing country positions on major issues in the new round of WTO trade negotiations.His key conclusions and recommendations:middot; Agriculture. Developing countries should support the Cairns Group in its push for greater liberalization of industrial countries' agricultural trade policies; the revised Food Aid Convention is not a substitute for but a complement to worldwide liberalization of agriculture.middot; Manufactures. The existence of tariff peaks and escalation in industrial country markets and the limited bindings at relatively high levels of developing country tariffs on manufactures present opportunities for negotiations with good prospects for shared and balanced benefits.The remaining nontariff barriers in industrial countries that affect manufactures are concentrated in textiles and clothing. Developing countries should ensure that industrial countries implement their commitments to liberalize this sector and impose no new nontariff barriers in this or other sectors under the guise of other rules or arrangements.The remaining nontariff barriers in developing countries should be converted into tariffs and reduced over time as part of the negotiations.middot; Antidumping. The increased use of antidumping measures by high- and middle-income developing countries in recent periods offers an opportunity for balanced negotiations to restrict their use. Reduced use of antidumping measures would increase efficiency and benefit consumers in all countries. But it is unclear whether a supportive climate for such negotiations exists in either industrial or developing countries.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to identify opportunities for developing countries in the WTO 2000 negotiations. The author may be contacted at cmichalopoulos@worldbank.org