The trouble with trade (page 3 of 3)

But it adds that for this to happen, European nations need to remove farm subsidies.

"Though most developing countries have opened their market to agricultural products, many industrialized nations still practice protectionism,'' says IFPRI. It predicts that the United States will gain most from free trade in agricultural goods, a gain of over $4.1 billion by 2020.

Agriculture is not an exception, but the rule. The developing world, simply put, has little to gain from free trade. Even the WTO itself admits it. Despite these drawbacks, Saudi Arabia will continue to advance towards WTO membership. Before the end of the decade, Saudi Arabia will finally join the WTO, thus ensuring that all the Arab economies are finally integrated into the global trade arena.

The Saudis are pressing for special concessions based on two factors - that it holds the world's largest oil reserves and that it is the seat of the two holiest cities of Islam. However, the WTO has so far refused to offer the Saudis special treatment, on the grounds that other members will reject any any concessions.

This is crucial since even after an agreement is reached between the Saudis and the WTO, it will need to be ratified by each existing member of the organization. And if China's entry was an indication, the Saudis will have to go through a similar, if not more rigorous exercise.

In the end, a decade from now, local businesses in the kingdom may be left wondering whether all that pain was worth the measly rewards that globalization will prove to offer.