The recent growth performance of these countries has been modest, almost two percentage points behind growth across all of Latin America and even farther behind the growing list of countries that have effectively used international trade as a vehicle for development. This modest growth and low gains of productivity suggest that the trade policies do not protect the economy, they protect particular interests in the economy, and they do so in a way that maximizes the social cost per degree of protection provided these interests. Indeed, it might be possible for these countries to liberalize significantly and at the same time to increase the amount of tariff revenue they collect.
International negotiations can be an important vehicle to advance and to support such reforms.
Negotiating postures aside, ones own restrictions should not be viewed as assets. They should phrase their requests from the smaller countries in such terms. Special consideration for the problems of smaller economies should focus on support for reforms of such policies. Work with import using and consumer interests in the larger countries. Smaller country exporters can find allies on the inside.