WTO: Trading with developing countries, facing challenges & opportunities
Rashmi Gujrati, Mansi Jain Garg
There are many opportunities for small businesses in developing countries. Exports to developing countries may be eligible for aid finance and imports may benefit from preferential UK and EU customs duties under the Generalized System of Preferences (GSP). Small businesses can also trade with developing countries as subcontractors to larger businesses.
The world trade organization was formed in 1995 with the General Agreement on Trade and Tariffs (GATT)as its basis WTO is the only global international organization dealing with the rules of trade between nations The purpose is to help producers of goods and services exporters and importers to smoothly, predictably and freely as possible Consumers and producers know that they can enjoy secure supplies and greater choice of the finished products components raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them. The result is also a more prosperous, peaceful and accountable economics world.
The World Trade Organization (WTO) sets a global trading framework for its 153 member countries, two-thirds of which are developing countries. The WTO’s open market policies have led to changes in the EU’s main trade and aid agreement with 79 developing countries - the Cotonou Agreement. The WTO has also recognized the need to make greater provision for developing countries and also for small business.
This paper covers the main WTO agreements and special measures affecting developing countries - the challenges and issues.