When should developing countries use bilateral state trading?

Martin Spechler*, Alfred Tovias

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Less developed countries can sometimes benefit by preferential trade agreements if they exercise market power. But partial preferential tariffs or quotas are illegal under GATT. We suggest three types of bilateral trade agreements which may profitably be used as legal substitutes. The most likely partners for such agreements are the East European planned economies. Terms of trade and trade structure can be improved without risking domination and dependence. Suggested negotiating strategy and tactics are outlined. Literature on experience with bilateral and state trading is considered favourable to this policy, though LDCs have up to now traded little with the smaller Soviet-type economies.

Original languageEnglish
Pages (from-to)1077-1086
Number of pages10
JournalWorld Development
Volume12
Issue number11-12
DOIs
StatePublished - 1984

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