International trade ties the world together and is hypothetically fair and equal. In reality, it is highly asymmetrical and poses a significant challenge for developing countries. A massive sea change occurred in the international trade regime during the Uruguay Round of negotiations of the General Agreement on Tariffs and Trade (GATT) from 1986 to 1994. Developing countries as a whole began to embrace liberal trade policies which seemed the only alternative to failing import substitution industrialization (ISI). In 180º, an historical comparative account describes and explains developing countries’ transformative attitudes from having little interest in the Uruguay Round of GATT negotiations to sharply changing course and adopting neo-liberal policies supporting the conclusion of the Round. Three theoretical approaches seek to explain why this significant change occurred, including: liberal trade theory (economic reforms), dependency theory (external forces) and constructivism (the role epistemic communities) as they relate to the ‘inequitable Grand Bargain’ between the developed and developing economies.
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