Small states should pursue unilateral and multilateral trade liberalization, and members of the African, Caribbean, and Pacifice (ACP) group should expand reciprocal agreements with the European Union (Cotonou Agreement) to the entire OECD. They should intensify South-South regional cooperation...

A survey of more than 50 empirical papers shows that the adjustment costs of trade liberalization are small relative to the benefits. Moreover, manufacturing employment typically increases with trade liberalization. The limited data suggests that trade liberalization reduces poverty