In Discussion Paper No.1043, Research Fellow Alan Winters discusses institutional design for trade policy-making in the CEECs. Although the CEECs have already determined in principle to follow a liberal path by joining or renegotiating their status in the GATT and by signing the Europe Agreements, there is still much to be determined. The correct set of institutions will help them to put their liberal intentions into practice; international agreements alone are not sufficient.

Drawing on US and EU experience, the author argues that legislatures should set the broad parameters, leaving commodity-specific detail to the executive. Sectoral ministries, such as Agriculture, Energy and Industry, should not control trade policy. Rather the task should fall to a special ministry with close links to the Treasury and ministry responsible for foreign affairs. It should be clear precisely who is responsible for trade policy, and the public should be informed both of their general interest in trade policy and of the costs and benefits of any particular action.

Who Should Run Trade Policy in Eastern Europe and How?
L Alan Winters

Discussion Paper No. 1043, October 1994 (IT)