trading problems of developing countries
TRANSCRIPT
LESS DEVELOPED COUNTRIES
Barriers to trade within the regional blocks • the primary barrier to trade
with its regional partners is the poor physical infrastructure development in terms of quality, maintenance and connectivity within the organization.
• for example Uganda lacks railway connection to Rwanda, Sudan which increased trade transaction and depressed trade opportunities within regions.
• Persistent interference with ground transportation,especially truck transportation,characterised by arduous customs and roadblocks checks
The EAC and largely COMESA partner states are currently entwined in exporting substitutable productsrather than complements. For example, all the EACpartner states export to each other, inter alia, plastics,dairy products, food stuff, soap products, cement,paints and varnishes, and vegetable, fats and palm oil.This has generated unnecessary competition within the single market, which in turn has limited the gainsfrom trade, especially for Uganda because it is landlocked and incurs more production costs for the transportation of some raw materials. Thus, Uganda needsto rapidly diversify its exports, especially in the services industry, in order to reap the gains of integration.
• Disadjustment in the respective partner migration policies toward skilled labor to facilitate the flow of labor and to address persistent skills shortages in specific fields.
EMERGING MARKETS
Highly dependence on Advanced Nations• majority of exports go to advanced nations and imports come from
these advanced nations
• unstable export markets
• exports are based on primary products like agricultural products , raw materials and fuels.
• during poor harvest or decrease in demands for nation's specialised product,significantly reduces revenues from export.
• disrupt domestic income and damage employment levels.
• limited market access
• protectionism and trade barriers imposed by advanced nations has been hindrance to nation's market access.
• global protectionism in agricultural.
• the unwanted surplus that resulted from government subsidies are dumped into world market at lower price , which in turn decreases prices for agricultural commodities in market and reduce export revenues significantly for developing countries.
• landlocked countries in trade
• dependence on neighbours’ infrastructure;
• dependence on sound cross-border political relations;
• dependence on neighbours’ peace and stability; and
• dependence on neighbours’ administrative practices.
