"Zero-sum?"

The Economist, March 1, 2001

Synopsis:

Tariff reductions for poor countries will significantly help them export more and thus gain from international trade. In this respect, the EU's recent decision to reduce tariff barriers for poor countries is noteworthy. For 48 of the world's poorest countries, all goods with some exceptions can be imported in Europe free of tariffs. As a result, the new regime will help exports from those countries to grow by 15-20%. As this article explains, however, the ultimate outcome would not be very satisfactory. The upsurge in exports by some poorer countries will come at the expense some poor ones. Furthermore, non-tariff barriers will continue to limit the volume exports from those countries.

Full-text Article: http://www.economist.com/printedition/displayStory.cfm?Story_ID=518963&CFID=467262&CFTOKEN=6567573

Text connection: Chapter 5 "The Political Economy of International Trade" (pp.153-157).

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