The traditional argument in favor of a positiverelationship between liberalization and poverty reduction
focuses on the first two linkages. A large proportion of poor people work in the agricultural sector, wheretrade
distortions are particularly high. Liberalization could lead to higher world agricultural prices and raise activity
and remuneration in this sector in developing countries. The same beneficial outcome could occur in the textile
and apparel sectors, where protection remains high and developing countries have a comparative advantage.