Tuesday, November 8, 2011

Why is it so important for developing nations to be involved in trade, and what institutions and policies exist to help developing nations?

This week my group focused on International Sugar Agreement. In an attempt to focus of developing firm and worthwhile poilicies for third world/developing  countries, I believe the world trade organization should live up to its core value system first of all of requesting nations like the EU, Japan and most western countries who have huge tarrifs on importing sugar into their nations to agree to a quota system for sugar manufacturing. The WTO is said to be where countries who have faced trade barriers and wanted them lowered managed to enter negotiations. This has helped to open markets for trade. http://www.wto.org/english/thewto_e/whatis_e/who_we_are_e.htm
According to the world trade organization  and http://sugarinds.blogspot.com/2011/06/world-top-10-sugar-producing-countries.html ..EU consumes about 1/3  of the worlds sugar consumption  and so the likelyhood of relinquishing sugar rights in production and consumption is unlikely. In addition Eu & the us provide subsidies and a high import tariff make it difficult for other countries to export to the EU states, or compete with it on world markets. The U.S. sets high sugar prices to support its producers with the effect that many sugar consumers have switched to corn syrup (beverage manufacturers) or moved out of the country (candy makers).


As a result of all this and a policy suggestion, It is only a far economic and globalization strategy if less developed countries are be given a chance to prove their abilities too by being allowed to export some of this sugar in many different parts of the world.. It is further stated that "International trade is largely defined by preferential trade agreements in which sugar producing countries enjoy access to the higher priced domestic markets of the EU or USA through preferential access. Yet, The worldbank back suggest according to http://siteresources.worldbank.org/INTAFRICA/Resources/257994-1215457178567/Sugar_Profile.pdf
Sugar production in LDCs-Less developed countries is growing rapidly. Annual growth in sugar production in LDCs has averaged more than five percent - the highest amongst all groups of developing countries– although from a relatively small baseline. Growth is expected to continue in the LDC sugar-producing countries given increased transitional EBA sugar quota access and zero-duty
access after 2009. Thus, I would suggest that sugar producing nations be given the opportunity to produce through a world Trade organization agreement and be given the expertise necessary to be competitive, through some quota system. The WTO should enforce that all nations be provided a quota system that can ensure LDC have the ability to compete even if the scale is small in global markets to ensure the vibrancy of economic interdependence. The next and future agreements should open doors for less developed nations to compete. Emerging less developing nations should take advantage of their peak sugar seasons and improve their technologies to compete globally. This will create jobs in their countries and advance their recognition internationally.

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