Multilateral Trade Negotiations in the GATT and the WTO: Lessons for Asia

Abstract

This paper aims to help Asian trade negotiators by examining the processes and results of the Uruguay Round. Analysts argue that trade negotiations are based on mercantilistic rules. But the actual outcome of the Uruguay Round suggests that trade bargaining was not based on strict reciprocity. In terms of tariff reductions, Asian economies received more than they gave, but relative to tariff bindings, Asian economies gave more than they received. Asian economies that undertook trade reforms prior to the trade talks did not lose bargaining power. The paper also presents econometric evidence on the determinants of bargaining power of nations.