Preferential market access issues

To fully utilize trade as a key driver of economic growth, access to markets should be free and under predictable terms. As discussed briefly in Chapter I, the link between trade and development is not only channelled through imports supplying necessary resources including knowledge and technology as well as final goods at prices and varieties not possible in autarky, but also through exports in terms of allowing exploitation of economies of scale, learning by doing as well as economic diversification. Thus, export markets also need to be accessed without obstacles, also for the simple reason of allowing exporters to capture higher prices as they would not need to shoulder the burden of tariffs for the local consumers. To assist exporters from developing countries, the international community agreed to introduce trade preference arrangements in order to improve their development prospects.

Related Subject(s): Economic and Social Development