Enlarging the Vision for Trade Policy Space: Special and Differentiated Treatment and Infant Industry Issues

Patrick Messerlin

The World Economy, 2006, vol. 29, issue 10, 1395-1407

Abstract: NAMA liberalisation alone will not be sufficient to make the Doha Round a pro‐development Round. It is important to enlarge the vision to include, for example, services and certain aspects of intellectual property rights. Further the ‘policy space’ notion often mentioned when discussing trade‐development relations should not be defined as limited to trade policy. It should include the many non‐trade instruments (e.g. subsidies or taxes on goods and factors of production) that a government could use for development purposes. Infant industry protection is the oldest, but most risky, use of trade policy as a development policy. As a policy it could be successful only in a very limited number of sectors and it has little chance of providing the broad impetus needed for development.

Date: 2006
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