Source: Abreu, M. (1996), �Trade in manufactures: the outcome of the Uruguay Round and developing country interests� in Martin, W. and Winters, L. A. (eds.), The Uruguay Round and the Developing Countries, Cambridge University Press, Cambridge.

Average Tariffs after the Uruguay Round (%)

Initiated in 1986 (in Punta del Este, Uruguay) the Uruguay Round brought about the biggest reform of the world�s trading system since the setting of the GATT at the end of the Second World War. It took about 7 years to be ratified and represents the largest trade negotiation ever, and most probably the largest negotiation of any kind. The outcome was a substantial reduction in tariffs, by a factor of 30 to 60% in many industrial sectors. By the mid 1990s, most tariffs were well below 10%, below 3% in many cases. This outcome considerably lessened trading costs and international trade increased accordingly.

Trade agreements are thus difficult to establish as numerous actors are involved, each having a different stake, and that the benefits of trade tend to be positive from a macroeconomic perspective, but can be negative for specific sectors.