ABSTRACT

REDUCING INTERNAL BARRIERS to INTERNATIONAL TRADE Barriers to expanded international trade in agricultural products are both self-imposed by developing countries and externally-imposed on them by protectionist policies in more developed countries. We begin by considering what developing countries can do internally to solve their trade problems. Trade restrictions are imposed within developing countries in attempts to distribute benefits to particular groups, to generate government revenues, and to offset economic instability and food insecurity. Removing these restrictions may require institutional change to facilitate reform, alternative revenue sources to replace trade taxes that help pay for public services, and bridge financing to pay the adjustment costs associated with short-term losses before long-term gains arise.