Trade Liberalization and Export Performance in Bolivia

One of the anticipated gains from the trade liberalization policies adopted by many Latin American countries in recent years is improved export performance. In this article, the arguments on which this expectation is based are reviewed and the impact of trade liberalization on Bolivian manufactured exports analysed. The conclusion is that improved export performance is largely the result of a more realistic and more stable real exchange rate after 1985, while the trade policy reforms have had little impact. Certain deficiencies of Bolivia's export performance, such as the increased emphasis on primary and semi-processed products, and the lack of diversification in terms of both products and markets, are also noted.     

Mexican Public Sector Food Policy Under Agricultural Trade Liberalization

Mexico has enjoyed one of the Third World's most successful food production systems, based on a complex pattern of public sector intervention. Since 1982, the public sector has withdrawn, in a remarkably Steadfast commitment to privatization, external stabilization, and trade liberalization. This article traces the key elements of that process, and their likely impacts on traditional political goals of food security progressive social policy in the countryside, and external sector dependence. The principal argument is that privatization and trade liberalization leave poor agriculturalists vulnerable, but undoubtebly offer fiscal gains to the state and benefits to urban consumers, especially in light of reduced subsidies.     

How China Navigated the Dilemma of Trade Liberalization and Government Revenues

Many economists believe that in the long run, the aggregate performance of open economies is better than that of closed ones, and that open policies contribute significantly to economic development. At the same time, many political scientists and policy makers fear that, in the short run, one of the steps towards openness — trade liberalization — may harm government revenues. However, in the 1990s, China successfully navigated the dilemma of trade liberalization and government revenues. In this period, China decreased tariff and non‐tariff barriers for WTO accession, but has achieved dramatically increased tariff revenues since 1999. This study explores how China implemented trade liberalization and simultaneously increased tariff revenues in the 1990s. It demonstrates that a series of institutional arrangements, including a reform of Criminal Law, rigorous anti‐smuggling activities and a de facto tax imposed on the export sector, successfully curbed smuggling activities through the processing trade, and made foreign‐invested manufacturing enterprises the major contributors to the stability of customs revenue. China's case shows that a prosperous, export‐oriented and foreign‐invested manufacturing sector could potentially provide a developing country with a source of customs revenue.     

Trade Liberalization and Prudential Regulation: The International Framework for Financial Services

This article provides an overview of the issues involved in international efforts to open and restructure markets for financial services and to ensure adequate regulation and supervision of financial firms. It discusses the liberalization in the General Agreement on Trade in Services (GATS), the first global trade agreement to cover financial and other services, and the roles of various international fora in strengthening national regulatory and supervisory systems and enhancing cooperation and coordination between supervisors. The article emphasizes that measures to liberalize trade in financial services and measures to strengthen prudential regulation and supervision are complementary and mutually reinforcing.     

Cross-Border Trade Liberalization: The Case of Lokmaci/Ledra Gate in Divided Nicosia,Cyprus

In the divided Walled City of Nicosia, there are two separate markets: one in the Greek Cypriot South and one in the Turkish Cypriot North. The division is the result of the unresolved Cyprus Problem. However, UN-sponsored negotiations are gradually liberalizing trade as well as movement of people across the border. On 3 April 2008, the Ledra Street/Lokmaci Gate was opened, allowing people, tourists and shoppers to cross to the other side. This event was further stimulated by action on the part of various aid agencies, principally the European Union, United States Agency for International Development and United Nations Development Program, who had invested heavily in revitalization projects to restore historic and heritage sites in the area. These two complementary effects (i.e. revitalization projects and opening the Gate) have generated significant trade creation in the business district near the Gate. It is the overall aim of this paper to quantify the “trade creation effect”. The paper reports the results of a special survey of primary shop owners in the neighbourhood of the Gate in the northern part of the capital. The study finds empirical evidence of substantial trade creation, especially for Turkish Cypriots. However, this optimistic finding is clouded by the on-going bitterness of the last divided European capital surrounded by barbwires and minefields of the UN buffer zone that prevent maximum economic prosperity of a potential political settlement.