Empirical studies of international trade have concentrated on singleequation models to analyse the demand relationship for imports and exports [Houthakker and Magee (1969). Naqvi et al (1983), Bnhmani-Oskooee (1984,1986)]. These studies have assumed that the imports and exports price elasticities facing any individual country are infinite or at least large. The assumption of infinite supply price elasticity may be acceptable for the world supply of imports to a single country. Export demand and supply functions have been estimated in a simultaneous equation framework by Khan (1974), Goldstein and Khan (1978). Dunlevy (1980), Arize (1986.1988). Balassa et al [1989]. Anwar (1985), and Khan and Saqib (1993)] for both developed and underdeveloped countries. Haynes and Stone (1983) argue that previous studies failed to estimate the supply behaviour of both imports and exports not only because of a simultaneity bias but also because quantity rather than price were specified as the dependent variable. They have, based on the evidence of USA and UK trade data for the period 1947-79, found support for a dynamic supply- price model for both exports and imports and no evidence to support dynamic supply-quantity specification for these countries.