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The traditional relation between richer and poorer countries, whereby the former exported manufactures and the latter exported primary products, has been undergoing an accelerating transformation in recent years. Developing countries are emerging as serious competitors in the world economy in a widening range of manufactured products, and increasing industrial exports is one of the highest foreign-policy priorities of their governments. At the same time, demands for import restrictions have been increasingly heard in the older industrial countries. The result is that bilateral bargaining to regulate trade and market shares has become a common but understudied element of the North-South diplomatic agenda. Despite all our recent discussion of the international economic order, our knowledge of this type of bilateral conflict is quite sketchy. Industrial trade issues touch several often-conflicting policy objectives of …