Global Trade Liberalization And The Developing Countries

Global Trade Liberalization and the Developing Countries

1. Trade is one of the most important activities that countries can develop. It has been growing during the last years because of the reduction of trade barriers and technology. However this progress of integration has been irregular in developing countries.

2. The World’s economy integration has shown to have many benefits; we can mention for example the raise of living standards around the world. Customers receive better services and high quality products because of the existence of more enterprises and products.

3. It is also important to mention that countries, specially developing countries, which every day have a higher participation on global trading, have seen their incomes rising dramatically and have shared prosperity with industrial countries.

4. Free trade allows developing countries to achieve desired economic success, but must be policies to have an open economy and that all countries benefit from it.

5. It is important to recognize that access to new markets improves the quality of life for people to have variety and competitivity in the choice of products or services, but this must be through agreements between the global trade organization for a level playing field among the least developed.

6. The ability of trade to improve social welfare depends not only on trading results but also a wide range of non-trade policies, such as investments in social safety nets, education, technology and infrastructure.

7. We understand that trade liberalization around the world is a process. It depends on the cooperation of both, industrial and developing countries. It is necessary to decline protection on products when trading them. They have high tariffs trying to protect domestic economies but not considering the greater benefits global trade could generate. In a way, developing countries have a big disadvantage on this item because of the lack of technology because they are not prepared yet to provide higher quality products to compete in a greater market.

8. If more industrial countries could offer the poorest countries duty and quota free access, the market around the world could benefit these countries at little cost to the rest of the world.

9. The effects of trade depend largely on local conditions, making it essential to go beyond the unique solutions, designing, implementing and financing ambitious global integration strategies.

10. Many of the poorest developing countries already have access to the markets of developed countries without tariffs or quotas through reciprocal preferential agreements and non-reciprocal. The failure of these preferences may lead to lower income they get from its exports, unless their volume increase or diversify the production of farm or greater value added, is something that should be taken also consider.

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