- International Monetary Fund
- Published Date:
- December 1988
© 1988 International Monetary Fund
Library of Congress Cataloging-in-Publication Data
Issues and developments in international trade policy.
(Occasional paper / International Monetary Fund; no. 63)
1. International trade. 2. Commercial policy. I. Kelly, Margaret R. II. Series: Occasional paper (International Monetary Fund) ; no. 63.
HF1379.I85 1988 382’.3 88-32891
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The following symbols have been used throughout this paper:
… to indicate that data are not available;
—to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 1984—85 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 1985/86) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
This study was prepared in the Trade and Payments Division of the Exchange and Trade Relations Department of the International Monetary Fund, Its authors are Margaret Kelly, Division Chief; Naheed Kirmani, Assistant Division Chief; Clemens Boonekamp, Senior Economist; and Miranda Xafa and Peter Winglee, Economists. Dan Lee, Philippe Moutot, and Bernhard Fritz-Krockow also made significant contributions to the preparation of this study. The authors are indebted to a number of colleagues, both in the Fund and in other national and international agencies, for their willingness to exchange views and provide information. The authors are grateful to the editor, Elin Knotter, of the External Relations Department, and to Marcela Toso and Barbara Bulcock who typed the bulk of the draft. The authors alone are responsible for the study; any opinions expressed are theirs and do not necessarily reflect the views of the Fund.
To obtain information and collect views for this paper, staff teams held discussions with trade and economics officials in Bonn, Brussels (the Commission of the European Communities), Canberra, London, Mexico City, Ottawa, Paris, Seoul, Tokyo, Washington, and Wellington. In addition, a staff team visited Geneva and Paris for discussions with GATT and OECD officials. Staff members of the Western Hemisphere Department participated in the discussions held in Ottawa and Washington. Staff members of the European Department participated in the discussions in Bonn, Brussels, London, Paris, and Wellington, and staff members of the Asian Department participated in the discussions in Seoul and Tokyo. While in Europe, the staff team was assisted by the Fund Office in Europe and the Fund Office in Geneva.
The study 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. It follows the pattern of the Fund staff surveys prepared in 1978,1981,1982, and 1985. * As in the latter paper, emphasis is on policy developments in the major trading nations as they relate to trade in both industrial and agricultural products. The survey also includes a review of trade policies in developing countries and refers to available quantitative evidence on protectionism wherever possible.
The study comprises six sections and five appendices. Section I provides an overview of recent trade policy trends, the major issues facing the multilateral trading system, and the prospects for liberalization in the Uruguay Round of trade negotiations. Section II describes recent trade trends, reviews the overall stance of trade and trade-related industrial policies in major industrial countries, and discusses the causes and costs of protection. Section III examines the trade policies of developing countries and the implications for them of trade restrictions in foreign markets. Section IV describes the recent evolution in the framework for international trade, including the major issues under discussion in the Uruguay Round, and the role of the Fund in trade and its collaboration with GATT. Sections V and VI describe trade actions by major industrial countries in individual agricultural and manufacturing sectors, respectively, including quantitative estimates of the costs of protection in individual sectors. Appendix I describes the trade and trade-related industrial policies of the European Community. Appendix II reproduces the Ministerial Declaration on the Uruguay Round, Appendix III describes the classification of countries and regions used in the paper and Appendix IV provides a glossary. Appendix V contains statistical tables.
The study was completed in July 1988 and most of the data do not go beyond this period. In the light of subsequently available information, certain data have been updated and a few major developments have been incorporated in the text or in footnotes.
List of AbbreviationsACP
African, Caribbean, and Pacific countriesCAP
Common Agricultural Policy (EC)CCC
Commodity Credit Corporation (United States)CSEs
Consumer subsidy equivalentsECU
European currency unitEEP
Export Enhancement Program (United States)EFTA
European Free Trade AssociationEMS
European Monetary SystemERA
Effective rate of assistanceERP
Effective rate of protectionFOGS
Functioning of the GATT System (Uruguay Round)GATT
General Agreement on Tariffs and TradeGMP
Guaranteed minimum priceGNG
Group of Negotiations on Goods (Uruguay Round)GNS
Group of Negotiations on Services (Uruguay Round)GSP
Generalized System of PreferencesIDA
International Dairy ArrangementIPRs
Intellectual property rightsITO
International Trade OrganizationLIPC
Livestock Industry Promotion Corporation (Japan)MAFF
Ministry of Agriculture, Forestry and Fisheries (Japan)MCA
Monetary compensatory amountMFA
Multilateral trade negotiationsNIEs
Newly industrializing economiesNPC
Nominal protection coefficientNRBP
Natural re source-based productsNTMs
Organization for Economic Cooperation and DevelopmentPIK
Payment in kind (United States)PSEs
Producer subsidy equivalentsQRs
Surveillance Body (Uruguay Round)SITC
Standard International Trade ClassificationTEA
Targeted Export Assistance program (United States)TNC
Trade Negotiations Committee (Uruguay Round)TRIMs
Trade-related investment measures (Uruguay Round)TRIPs
Trade-related intellectual property rights (Uruguay Round)TSB
Textile Surveillance BodyUNCTAD
United Nations Conference on Trade and DevelopmentVERs
Voluntary export restraintsWEO
World Economic Outlook