ABSTRACT
The first issue of the Economist magazine in 1843 asked what the remedy for increasing trade restrictions was. The question is as relevant today as it was then. Much the same too can be said about the answer: compensation and the facilitation of adjustment remain the very crux of the matter. Like domestic political negotiations, the success of international trade negotiations ultimately hinges on the trade-off between efficiency and equity. Often, greater efficiency can not be achieved without due attention to equity issues.
