During the last decades, many trade agreements were signed between developed and developing countries. The question is whether or not those trade agreements improved or were profitable for developing countries.
Your ideas.
Dear Mr. Niyungeko Antoine ,
I think trade agreements are possibilities and opportunities for developing countries. But usually we can notice that developing countries could not effectively use that opportunities. The economies of developing countries are not ready to compete with economies of developed countries. Sometimes goods they produced do not meet the developed states standards, final goods are not competitive. They export mineral resources, raw materials, agricultural goods, and rarely finished industrial products. That's the issue!
Best regards,
Dr. Vardan Atoyan
Dear Mr. Vardan Atoyan, you are right, and I share with you the same conclusions. There is no technology transfert from developed countries to developing countries. Situation will remain the same until those multinational make a real transfert of technologies. Trading imply producing at the accepted standard. I think, the free trade agreements increase import in devoping countries, that create new demand in developing countries.
I am in agreement with all of the above comments. However, I would argue that being around the table instead of away from the table has it's own benefits just like demonstration effects does!
Trade agreement will never favour developing countries because of the nature of their export. Most developing countries only export raw materials without adding value and therefore earn little foreign exchange while developed countries export finished and semi finished products in addition to machines and technology that attracts high foreign exchange. Thus, terms of trade will always favour developed countries.
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