Determining the Need for Issue Linkages in Multilateral Trade Negotiations

Abstract

In multilateral trade negotiations, trade-offs usually are made within the issue-areas that are on the agenda. In the absence of cross-issue trade-offs (linkages), agreement may not be possible. To maximize both the potential gains from trade and the scope for agreement, negotiators need to be willing and able to consider the feasibility of issue linkages. This raises the practical problem of determining when such trade-offs are likely to be necessary. Although quantitative methods of policy analysis have been developed, they have not been widely used by policymakers, in part owing to the fact that negotiations focus largely on nontariff measures. This article proposes a qualitative approach to the problem and applies it to the Tokyo and Uruguay Round negotiations on safeguards to protect domestic industries from problems related to increases in imports.