This report examines the changing landscape of world production and trade, focusing on the major trends in global markets as they affect the distribution of gains from further trade reform. The key purpose of the report is to estimate the costs to both developed and developing countries of the trade distortions that will remain after the Uruguay Round is fully implemented, and the potential economic effects of reducing those distortions. Using the Global Trade Analysis Project (GTAP) model, the patterns of changes since the 1960s are used as a basis for projecting the world economy though to 2005. The authors conclude that even after the full implementation of the Uruguay Round commitments, huge welfare gains remain to be realized.