ABSTRACT
This chapter estimates the impact of the Uruguay Round in terms of these three effects, on five air pollutants, for China, East Asia, South Asia, Africa and Latin America. Estimates are also made for the USA and the European Union (EU), allowing a distinction to be made between the nature of the environmental impact in developed and developing regions. The liberalisation of the MFA is therefore predicted to cause the textile and clothing production sectors in the developing world, and particularly in Asia, to expand. The liberalisation of the Multi-Fibre Arrangement is therefore predicted to cause the textile and clothing production sectors in the developing world. The fact that emissions of most local air pollutants are now falling in the developed regions illustrates that some environmental problems can be mitigated with financial resources. In the developing world, the social benefits stemming from the Uruguay Round are likely to exceed those costs resulting from increased environmental damage.
