Emerging Agenda for Global Trade: High Stakes for Developing Countries

Three of the highest profile issues on the international trade policy agenda are competition policy, labor standards, and linking trade and environment. This Policy Essay focuses on to what extent international rules in these new trade areas are needed, and considers how developing countries could be affected by global agreements. Robert Lawrence argues that if an international agreement on competition policy was possible, developing countries would derive considerable benefits. Dani Rodrik considers whether a social-safeguards approach can be made to work for labor standards and suggests that the risks of not negotiating such a clause outweigh the dangers of an inappropriately designed process. Finally John Whalley argues that the central issue for trade and the environment is whether developing countries should be compensated for policies encouraging environmental restraint.