Economic Implications of Trade Liberalization Under the Doha Round

We explore the impact of multilateral liberalization, with emphasis on the EU and developing countries. We first develop a realistic "baseline" that takes into account events such as the entry of China into the WTO and the enlargement of the EU, allowing us to focus on those effects that are specifically attributable to further trade liberalization in the Doha Round. We then employ a global applied general equilibrium model, featuring capital accumulation and imperfect competition. Our Doha scenarios include agriculture, manufactures, and services liberalization, and trade facilitation. With agglomeration, OECD agricultural liberalization is not uniformly positive for LDCs.