Blog Post

03 July 2015

TRADE WITH DEVELOPING COUNTRIES

If your business depends on trade with developing countries, you may want to look into this new new report by OCED/WTO called Aid for Trade Program to reduce your trade costs. It shows the importance of trade and the multilateral trading system in delivering economic growth and development  The Report states, “Landlocked, remote, and small economies are marginalised by costs that reflect geography, not capability.  Of particular concern is the stubbornly high level of trade costs for agricultural products. Trade costs also fall disproportionately heavily on small- and medium-sized enterprises. These companies are an engine of employment the world over and offer a route out of poverty, particularly for women.” As a result, their program has disbursed a total of USD 264.5 billion in official development assistance among other financial contributions.   The Report states, “The development benefits of reducing trade costs are impressive: a 1% decrease in global trade costs would increase global income by USD 40 billion at a minimum, with close to two-thirds of this amount accruing to developing countries, according to OECD calculations.” For the full report:  www.oecd.org/aidfor trade.