South-South Trade: Tapping the Potential
International Trade Forum › Num. 3/2004, Juillet 2004
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Résumé
ITC has been promoting South-South trade for over 30 years. The untapped potential is great among developing country firms. What is holding them back? The answer is a mix of related facts and perceptions. First, it's often believed that developing countries produce similar goods - mainly raw materials and commodities - and therefore don't have trade complementarities. The lack of reliable trade information perpetuates this belief. In fact, developing countries produce a wider range of goods and services than conventional wisdom would have people believe. Second, there's a notion that low gross domestic product levels reflect limited market potential. However, developing countries import - often at high cost - from developed countries. Third, while trade between developing countries is currently growing by 10% a year, the pace could pick up if trade barriers between them fall.
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South-South Trade: Tapping the Potential
Exporters still tend to focus on traditional markets in industrialized countries. These markets are highly competitive and difficult to enter, whereas for many developing country fi...
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