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A Preference Erosion Compensation Fund A new proposal to protect countries from the negative effects of trade liberalisation

Written by Sheila Page

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'Developing countries which currently benefit from trade preferences will suffer substantial losses if trade liberalisation proposals currently being negotiated are carried through. They should be compensated by creating a special new fund of approximately $500m p.a. for perhaps ten years – a small share of the total benefit to the world from trade liberalisation.'