Special and Differential Treatment: Under the World Trade Organization (WTO), developing countries are given special and differential treatment (SDT) in trade negotiations. This means that they are given more time to implement trade agreements and are allowed to provide certain protections for their domestic industries. This strategy has been used by countries such as India and Brazil to protect their agricultural sectors and promote industrialization.
Export Promotion: Export processing zones (EPZs) are designated areas within a country where goods can be produced and exported with special tax and regulatory incentives. These zones can be used by developing countries to attract foreign investment and promote exports. For example, China’s Shenzhen Special Economic Zone was established in 1980 and has been credited with helping to spur China’s economic growth.
Aid for Trade: Aid for Trade is a strategy that involves providing developing countries with financial and technical assistance to help them increase their trade capacity. This can include support for infrastructure development, trade-related training, and the implementation of trade agreements. In 2020, the European Union provided €3.4 billion in Aid for Trade funding to developing countries.
Technology Transfer: Technology transfer involves transferring technology and expertise from developed countries to developing countries to help them improve their productivity and competitiveness. This strategy has been used by countries such as South Korea and Taiwan to help them become leading exporters of high-tech products. For example, South Korea’s government provided funding and support for the development of its semiconductor industry, which is now one of the largest in the world.
Preferential Trade Agreements: Preferential trade agreements (PTAs) are agreements between countries that provide preferential access to each other’s markets. These agreements can be used by developing countries to increase their exports and access new markets. For example, the African Continental Free Trade Area (AfCFTA) was launched in 2021 to promote trade between African countries and reduce barriers to trade within the continent.
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