66. A major reason for the rising demand for protection of declining industries has been the persistent and unusually high lavel of unemployment in the developed market economies. a problem that must be addressed in its oi{n ri.ght, In 1985, theEhird year of recovery from the depfhs of the vorld recession, progress in cutting back overall unemployment raCes renaj.ns painfully sloi{ except in l,Ior th Amerlca. According to the OECD, unemployment in OECD countries is expecled to increase in 1986 to over 3l million. 67. Overvaluation of currencies reinforces demands for protecti.on. It erodes thecompetitive strength of industries that under more nornal conditions would have a comparative advantage. A relaCively stabLe but flexible exchange rate r6gime, ra,hich reflects the fundamental economic conditions guiding international trade, isnot only an integral part of a properly functioning international fionetary sygtembut also necessary for the maintenance of an open trading syslem. 68. ?he conmitments made at the 1982 Ministerial Meeting of cAfT to roll backrecent trade barriers bave not yet been followed by much action. This has been oneof tbe objections of some developing countries to the proposal for a new round ofmultilateral trade negotiations in GATT, but developed countries have seen it as an argumenC for a new round, since multilateral and reciprocal liberalization i,seasier to reaf i,ze than unilateral Anolher issue has been the wish for assurancethat paral.lel efforts will be made to achieve greater exchange stability, without i,rhich it is thought by some that trade negotiations wlII be difficult ormeaningless. The proposal to include services and investment issues in lhe nextround has also met with objections, since an innovation of this kind would call for
**Analysis**
The text appears to be discussing the economic issues and challenges faced by developed and developing countries, particularly in the context of international trade and the protection of industries. The text mentions unemployment, currency overvaluation, trade barriers, and the need for exchange stability, which suggests that the category related to economics and trade is the most fitting.

**Category**
International trade, Employment