Options for Trade Liberalization in the Uruguay Round Negotiations

Abstract

As the world proceeds with the eighth GATT (Uruguay) round of multilateral trade negotiations, it is important to consider the potential economic effects of different negotiation options that are available to the United States and other major trading countries. In this paper, we report on a series of computational experiments involving alternative scenarios for trade liberalization, using the Michigan Model of World Production and Trade. The Michigan Model is well suited for this kind of analysis since it is a multi-country, multi-sectoral computational model covering the eighteen major developed and sixteen major developing countries and allowing for a variety of complex general equilibrium interactions, both globally and within individual countries.