Free trade can help 500 million people escape poverty and inject $200 billion annually into the economies of developing countries, according to a new study from the Institute for International Economics. Trade Policy and Global Poverty by William R. Cline provides a comprehensive analysis of the potential for trade liberalization to spur growth and reduce poverty in developing countries. It quantifies the impact on global poverty of industrial-country liberalization, as well as liberalization by the developing countries. Cline finds that the stakes of the poor in trade policy are large. Global free trade would convey long-term economic benefits of about $200 billion annually to developing countries. Half or more of these gains would come from the removal of industrial-country protection against developing-country exports. By removing their trade barriers, industrial countries could convey economic benefits to developing countries worth about twice the amount of their annual...

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