The arguments in favor of trade liberalization are well known: it promotes the efficient allocation of resources through comparative advantage, allows the dissemination of knowledge and technological progress, and encourages competition. Trade liberalization is likely to have a major impact on the lives of poor children and their families. Although this effect may be positive in the long run, the development literature recognizes that it may have a negative short-run impact in sectors that are unable to adjust rapidly enough to the new policy context. Vulnerable groups, especially children, may be affected in a variety of ways based on the effect on household livelihood and the intra-household distribution of power and resources. Complementary policies need to be put in place in order to cope with these vulnerabilities.