There have been great reductions in trade barriers in front of developing countries. Associated with this has been a shift away from dependence on export to reliance on domestic manufacturing. As a matter of fact, there were some reforms of trade policy in developing countries.
Prior to the mid-1980s, developing countries just relied on imports from other countries, a situation that exposed them to a higher volatility of prices and high concern about dependency on imported manufactures. However, by the late 1990s, around 80 percent of developing countries’ exports were manufactured goods which cause to lower concern about the role of trade.
Nevertheless, the developing countries were not alone to improve their economic situation. There were many agreements that helped them to reinforce their international marketplaces. One of these agreements is International Sugar Agreement. A brief objectives of this agreement includes:
Ø Increase the level of international trade in sugar, especially for enhancing the export earnings of developing exporting countries
Ø Provide enough supplies of sugar to meet other countries’ needs
Ø Increase sugar production in order to help producers economically
Ø Provide a growing access to international markets for developing countries
As it can be understood, the International Sugar Agreement is based on comparative advantage and mutual benefits. Although it helps developing countries to be improved, it provides a high degree of assurance for importers so they have no concern for their sugar demands in their domestic marketplaces.
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