Quantifying the Uruguay Round

The effects of the Uruguay Round are quantified using a numerical general equilibrium model which incorporates increasing returns to scale, 24 regions, 22 commodities, and steady state growth effects. We conclude that the aggregate welfare gains from the Round are in the order of $96 billion per year in the short run, but could be as high as $171 billion per year in the long run after capital stocks have optimally adjusted. Despite these global gains, we identify some developing countries that lose from the Round in the short run. In the long run, almost all gain, and the Round will allow developing countries to gain further through their own unilateral liberalisation.