MARKET ACCESS

WHAT IS IT?

  • Market access is an umbrella term for a number of measures that a country may use to restrict imports.
  • having market access ---> being able to import / export from/to other countries

HOW CAN IT REDUCE DISPARITIES?

  • expands business opportunities for local companies
  • diversifies an economy thus adding stability to it
  • access to know-how, innovation and research
  •  strengthens ties between nations through mutually beneficial exchanges

Cotonou Agreement

  • treaty between the European Union and the ACP countries ( the African, Caribbean and Pacific Group of States )
  • EU provides duty-free access to its markets for ACP exports, but ACP countries also provide duty-free access to their own markets for EU exports.

HOW SUCCESSFUL HAS MARKET ACCESS BEEN IN REDUCING DISPARITIES?

February 2001

The European Union started to allow duty-free and quota-free imports for almost all products from LEDCs

Bangladesh

With the production of rice exceeding 20 million tonnes this year, Bangladesh is now exporting surplus rice to the EU

----> diversifying it's economy

 

Due to strict quality regulations in European Union and insufficient standards in Bangladesh many products couldn't be exported

----> only beneficial for high quality producers ( not poor/rural )

 

June 1978

China decides to open up its economy to the rest of the world

China has achieved significant economic growth. But not distributed fairly across China’s regions

----> coastal regions were greatly promoted rural areas weren't

 

Chinas ,mostly rural, primary sector is struggling

-----> low prices to stay competitive

 

The country has been experienced an increase in secondary and tertiary market

---> stabilizing its economy

CHINA

IS THIS THE BEST WAY FORWARD?

  • It should not be used in isolation but in conjunction with a range of other polices

​But at the moment...

  • Rich nations may be prepared to open up their own markets, but still keep in place massive subsidies

  • Protectionist policies are one of the biggest barriers to free and open trade

SOURCES

http://trade.ec.europa.eu/doclib/docs/2012/january/tradoc_148991.pdf

 

http://unctad.org/en/docs/poditctabm7.en.pdf

 

http://www.nber.org/digest/mar02/w8611.html