All countries have much more to gain than to lose from opening up their markets.
As a new round of trade talks begins, the international community should make a commitment to pursue further trade reforms. At the close of the twentieth century, however, the global trading system is at a crossroads. Traditionally, trade liberalization has benefited developing countries through two important channels. First, when tariffs are lowered, relative prices change and resources are reallocated to production activities that raise national incomes. The tariff reductions implemented after the Uruguay Round of trade talks was concluded in 1994 raised national incomes by an estimated 0.3-0.4 percent.