© 1994 International Monetary Fund

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ISBN 9781557754578

ISSN 0258-7440

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Contents

• Preface

• List of Abbreviations

• I. Economic Implications of the Uruguay Round

• Richard Harmsen and Arvind Subramanian

  • Trade Liberalization

  • New Areas

  • Strengthened Rules and Institutions

  • Preferences

  • Integration Issues

  • Appendix I. Quick Reference Guide to the Results of the Uruguay Round

  • Appendix II. Summary of Specific Commitments in the Financial Services Sector of Selected Countries

  • Bibliography

• II. Trade Reforms in Fund-Supported Programs

• Nur Calika and Uwe Corsepius

  • Conceptual Framework and Methodology

  • Trade Policy Content

  • Trade Policy Conditionality

  • Issues in the Design of Trade Reform

  • Conclusions

  • Bibliography

• III. Antidumping: Solution or Problem in the 1990s?

• Michael Leidy

  • Recent Antidumping Activity

  • Rationales for Antidumping

  • Incentive Effects of Antidumping Policies

  • Results of the Uruguay Round

  • Conclusion

  • Bibliography

• IV. The International Dimension of Competition Policies

• Arvind Subramanian

  • Recent Developments

  • The Need for International Cooperation on Competition Policies

  • Ongoing Cooperation on Competition Policy

  • Possible Future Agenda for Cooperation

  • Appendix I. Competition Policies in the United States, the European Union, and Japan

  • Bibliography

• V. Trade and the Environment

• Arvind Subramanian and Peter Uimonen

  • Environmental Impact of Trade Liberalization

  • Environment and Competitiveness

  • Bibliography

• VI. Regional Trading Arrangements

• Richard Harmsen and Michael Leidy

  • Overview of Recent Developments and Issues

  • European Union

  • North American Free Trade Agreement

  • Appendix I. Regional Trading Arrangements

  • Appendix II. The European Union: Trade Relations with Transition and Mediterranean Economies

  • Appendix III. Southern Cone Common Market

  • Appendix IV. Central African Customs and Economic Union

  • Appendix V. The Cross-Border Initiative

  • Appendix VI. ASEAN Free Trade Agreement

  • Appendix VII. Asia-Pacific Economic Cooperation Forum

  • Appendix VIII. Gulf Cooperation Council

  • Appendix IX. Economic Cooperation Organization

  • Appendix X. Intra- and Extraregional Trade Flows

  • Bibliography

• Boxes Section

  • I. 1. The Multifiber Arrangement

  • 2. Coverage of Preferences

  • 3. Evolution of Special and Differential Treatment

  • III. 1. Antidumping: Procedures and Definitions

  • IV. 1. Illustrative List of Practices Regulated by Competition Policy

  • 2. Survey of Japan’s Car Distribution System from a Competition Policy Perspective

  • 3. Impact of Keiretsu: Empirical Evidence

  • V. 1. GATT/WTO Rules and the Environment

  • VI. 1. Types of Regional Trading Arrangements

  • 2. Static Trade Diversion and Trade Creation: Simple Numerical Examples

  • 3. Regional Arrangements Under the GATT and the WTO

  • 4. Intra- and Extraregional Trade Developments

• Tables Section

  • I. 1. Industrial Countries: Uruguay Round Tariff Reductions on Industrial Products by Country

  • 2. Industrial Countries: Uruguay Round Tariff Reductions by Sector

  • 3. Tariff Escalation on Industrial Countries’ Imports from Developing Countries

  • 4. Tariff Bindings

  • 5. Developing Economies: Uruguay Round Tariff Reductions on Industrial Products

  • 6. Transition Economies: Uruguay Round Tariff Reductions on Industrial Products

  • 7. Exports of Textiles and Clothing

  • 8. Leading Exporters and Importers of Textiles and Clothing

  • 9. Leading Exporters and Importers in World Trade in Commercial Services, 1992

  • 10. Major Industrial Countries’ Intellectual Property Income from Abroad

  • 11. OECD Imports under the Generalized System of Preferences (GSP)

  • 12. Imports under Preferential Schemes Other Than the Generalized System of Preferences

  • 13. Sub-Saharan Africa: Preferences for Non-Oil Exports in Industrial Countries

  • II. 1. Stand-By Arrangements and SAFs Approved 1991–93 and EFFs and ESAFs Approved 1990–93

  • 2. Summary of Trade Regimes

  • 3. Macroeconomic Indicators in Selected Program Countries

  • 4. Summary of Conditionality Applied

  • 5. Summary of Trade Reform Measures by Type of Conditionality

  • 6. Comparative Tariff Regimes in Selected Countries

  • IV. 1. Selected Competition Policy Issues in United States-Japan Bilateral Relations

  • 2. Salient Features of Competition Policies in the United States, European Union, and Japan

  • VI. 1. Sources of Apparent Consumption: EU-9

  • 2. Trade Between Major Participants in the Cross-Border Initiative, 1992

  • 3. Trade Regimes of Selected Participants in the Cross-Border Initiative

  • 4. Gulf Cooperation Council: Intra-GCC Export Trade, 1992

  • 5. Intra-ECO Trade of Selected Members, 1992

  • 6. Regional Arrangements: Extraregional Imports as a Share of GDP

  • 7. Intraregional Trade as a Share of GDP

  • 8. Extraregional Trade as a Share of GDP

• Charts Section

  • III. 1. Antidumping Activity

  • 2. Antidumping Activity: Australia, Canada, European Union, and the United States

  • 3. Distribution of Antidumping Cases

  • 4. Aggregate Antidumping Activity, Fourteen Users

  • 5. Concentration of Antidumping Measures in the European Union, the United States, Canada and Australia as Percentage of Fourteen User Total

  • 6. How Much Protection? Range and Relative Frequency of Final Antidumping Duties

• Volume I: Principal Issues

• I. Overview

• II. Trade Policy Developments, 1990-93

• III. The Uruguay Round

• IV. Post-Uruguay Round Agenda

• V. Role of the Fund

Preface

This is Volume II of a two-volume study that reviews major issues and developments in the trade area and their implications for the work of the International Monetary Fund. Volume I provides an overview of the principal issues and developments in the world trading system. Volume II presents more detailed background papers on selected trade and trade-related issues. The study focuses mainly on the period 1990–93 and reflects information available as of June 1994. It follows the pattern of the Fund staff surveys prepared in 1978, 1981, 1982, 1985, 1988, and 1992.¹

The study was prepared in the Trade Policy Division of the Policy Development and Review Department (PDR) of the Fund. The principal authors of the study are Naheed Kirmani, Division Chief; Nur Calika, Senior Economist; Richard Harmsen, Michael Leidy, and Arvind Subramanian, Economists; and Peter Uimonen, Research Assistant; they provided major contributions to both volumes of the study. Uwe Corsepius, Economist in the Fund at the time of the preparation of the study, was a major contributor to the background paper on Fund programs in Volume II. Selected sections in some of the papers in both volumes were prepared by Ali Ibrahim and Clinton Shiells, Economists; and Manmohan Agarwal, Consultant. Michael Da Costa, Senior Economist, provided input to Volume I of the study. Selected sections of some of the papers in Volume II were prepared by Filippo Cartiglia, Economist; and Rosa Alonso i Terme, Summer Intern.

To obtain information and collect views for this paper, the staff held discussions with trade and economics officials in Beijing, Bonn, Brussels (the Commission of the European Communities), Canberra, Jakarta, London, Mexico City, New Delhi, Ottawa, Paris, Tokyo, and Washington. In addition, a staff team visited Geneva and Paris for discussions with officials at the GATT, ILO, UNCTAD, and the OECD, and consulted the World Bank in Washington. The staff team was assisted by the Fund Office in Europe and the Fund Office in Geneva in some of the discussions in Europe, and by the offices of the Fund resident representative in Beijing, Jakarta, and New Delhi.

The authors are indebted to Jack Boorman, Director, and Anoop Singh, Senior Advisor (PDR) for their guidance in preparation of the study. Acknowledgement is due to numerous colleagues both in the Fund and in other national and international agencies for their willingness to exchange views and provide information, and to Professor Jagdish Bhagwati for helpful comments. The authors are grateful to the editor, Juanita Roushdy of the External Relations Department, and to Joan Wise, Lourdes Alvero, and Suzanne King-Loken for secretarial assistance. The authors alone are responsible for the study; any opinions expressed are theirs and do not necessarily reflect the views of the Fund.

List of Abbreviations