This paper discusses reviews major issues and developments in the trade area and outlines the problems in the multilateral trading system that governments face as they seek to liberalize trade in the Uruguay Round of trade negotiations. The paper's emphasis is on policy developments in the major...

Since 1978 the Chinese economy has grown on average more than 9 percenta year. Per capita income has nearly quadrupled in the past 15 years andsome analysts predict that within 20 years the Chinese economy will belarger than that of the United States. This pamphlet analyzes the reasonsfor the...

This paper shows that the presence of quotas on imported inputs that are based on installed capacity can lead to capacity underutilization in manufacturing industries of developing countries. A replacement of such quotas, by tariffs leads to full capacity utilization under assumptions of both...

The relevant “size” of an economy is affected by its environment. A country could be small in the world economy yet become big in relation to its smaller neighbors, imposing on them its relative price structure and the consequences of its trade policies. We examine here the consequences of...

The paper explores the relationship between trade policy and current accounts. The effect on the current account of a change in protection at home and then abroad is analyzed, assuming that the exchange rate floats. The “savings-and-investment approach” is used. It shows that there is no...

This paper assembles findings on the use of trade taxes, examines the main contributing factors, and reviews the fiscal aspects of trade policy as they relate to both efficiency and macroeconomic stabilization. It demonstrates why trade taxes would generally not be part of an optimal tax...

This paper reviews the main features of market-oriented foreign trade reforms in planned economies. It considers reform initiatives aimed at expanding enterprise autonomy and breaking up the state monopoly of foreign trade, modifying the exchange rate system, and reforming the domestic price...

This Selected Issues paper provides a brief overview of the Dominican Republic authorities’ structural reform efforts in the 1990s. The paper provides a history of trade reforms, which form an integral part of the structural reform agenda. It presents a review of fiscal policy during the...

Syria faces two interrelated medium-term challenges posed by the prospective decline in its oil reserves. The recently approved five-year plan (FYP) laid down a comprehensive strategy to address these challenges. Syria’s public finances are headed for challenging times in the coming 10–15...

This paper examines the monetary and exchange rate policies of the euro area and the trade policies of the European Union. The paper highlights that the overall economic performance of the euro area has been disappointing: growth has been weaker and inflation higher than generally expected. To a...