Question

In: Economics

Give an example of how a developed country has not provided trade preference to a developing...

Give an example of how a developed country has not provided trade preference to a developing country and therefore as far as GATT/WTO procedures are concerned shows that the developed country is not legally obligated to provide preferential treatment.

Solutions

Expert Solution

Yes it is true that the developed nations are not providing trade preferences to a developing nations because of the following reasons:
1.Developed nations are just considering the developing nations are the global market for their goods and the services.
2.Developed nations are only looking for the profit margins from the developing nations.
3.Still the developed nations are following the two fold motive: one is to purchase the raw material and semi finished goods at a very low rate and after the processing it sale back to the developing nations at a very high price.
4.Developed nations are the major source of funds to the world organisations like WTO. That’s why it is difficult for the nation to intermediate among them.
5.Developed nations are the most importantly taken the situational things from the developing nations.
6.In some cases the developed nations are imposing some restrictions of constructions, emission of carbon dioxide, formation of industries, etc. because they do not want to make these market the market of capital goods and to supply goods because these developed nations are not in favour to make these countries (developing countries) to sell the goods rather they prefer for these countries to only purchase the goods from the developed nations.

For example:-
The policy of US imposing restrictions on India, Srilanka, Nepal, Bhutan and other Asian underdeveloped countries to stop the industrialisation because of the carbon dioxide pollution and other pollutants.


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