Differential Market Access

Question 1

Why is the access to markets unfair?

Answer 1

Access to markets: how easily countries and companies can trade with one another as determined by the extent of exports and import barriers.

Factors affecting access to markets?

• Wealth
• Inclusion in trade blocs/agreements
• Unfair trade rules
• TNCs

Question 2

What is a preferential trade agreement?

Answer 2

Trade pact that reduces tariffs between the participating countries for certain products.

Question 3

What are special and differential treatments?

Answer 3

WTO agreements containing special provisions which give developing countries special rights and developed countries the ability to trade developing countries more favourably. (as go against WTO rules that all nations should be treated equally). E.g. EU’s Everything But Arms (EBA) agreement in 2001.

Question 4

What are some of the special provisions given out in the special and differential treatments?

Answer 4

• Longer time periods for implementing agreements.
• Measures to increase trading opportunities for developing countries.
• Provisions requiring all WTO members to safeguard developing countries’ trade interests.
• Support to help developing countries build the capacity to carry out WTO work, handle disputes, and implement technical standards.
• Provisions related to least-developed countries (LDC) Members.

Question 5

What are some of the economic impacts caused by the poor market access?

Answer 5

• Difficult to establish new industries
• Dependence on low primary products and limited access to markets for manufacturing products.
• Not attractive to Foreign Direct Investment
• Fewer employment opportunities as growth in all sectors is restricted
• Reinforces poverty and spatial and socioeconomic inequalities (e.g primary of core religions)
• Dependence on foreign aid
  - Therefore difficult to experience economic
  development

Question 6

What are some of the social impacts of the poor access to markets?

Answer 6

• Lower paying jobs/lack of skills developing > lower disposable income/standards of living.
• Low GDP limits finds for investment in healthcare, education, transport and infrastructure.
• More dangerous poorly paid work has moved from HICs to LICs.