This essay addresses the "new-new" issues on the emerging agenda
for the global trade negotiations to follow the recently concluded
Uruguay Round. The authors first examine the extent to which
international rules in new trade areas are needed and then consider
the three highest profile issues: competition policy, labor
standards, and linking trade and environment.
Robert Lawrence argues that if an international agreement on
competition policy was possible, developing countries would derive
considerable benefits. Dani Rodrik examines the evidence and
concludes that labor standards--or lack thereof--have consequences
for trade and foreign investment patterns. He then 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.
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