Trade Policies, Developing Countries, and Globalization

There have been very substantial reductions in the trade policy and other barriers inhibiting developing country participation in world trade. Associated with this has been a dramatic shift in the pattern of developing country trade, with a shift away from dependence on commodity exports to much greater reliance on manufactures and services, and greatly increased importance of exports to other developing countries. While the national level remains the principal focus of trade policy, developing countries have become increasingly involved in regional and multilateral trade negotiations. The multilateral system has made substantial adjustments to the increased importance of developing country members, but reforms in governance and a sharper distinction between positive and negative approaches to integration seem likely to be needed.