International Trade for Developing Countries Research Proposal

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The World Hunger organization (www.worldhunger.org) assertsthat there is a bias in international trade rules that favor developed nations. Why? Developed nations control the World Trade Organization, according to the World Hunger organization; and as to export items like pharmaceuticals, developed countries have shown "reluctance" to allow developing countries "to produce or import low cost generic drugs for major illnesses, such as AIDS" (www.worldhunger.org).

Another example of this alleged unfairness can be viewed in light of the U.S. Sugar Tariffs and Brazil. In the Washington Post (Jeter, 2003) it is explained that though the U.S. extols the greatness of free trade, it does not always live up to that rhetoric. The U.S. imposes a tariff of 244% on sugar imports "...above a small quote of duty free sugar imports" (Jeter, 2003). "While Brazil has both plentiful and fertile land and available workers, the 244% tariff that the U.S. Government levies on sugar imports" (above pre-established quotas) thoroughly throttles the Latin American nation from greatly expanding its sugar industry. This is an example of an unfair negotiation, and it also shows that big developed nations and their multinational corporations - such as seen in the U.S. - can dominate on the global market when it wants to protect its own resources and interests.

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Brazil could easily double its sugar production almost overnight," said the president of the Companhia Energetica sugar mill in Santa Elisa, Brazil, Senor Maurilio Biagi Fiho (Jeter, 2003).

And so in conclusion, it is without doubt a fact that participating in the global market through more open trade policies can and does help Third World countries. But there is a cautionary note to that potential success, and that is that those Third World countries need to develop the sophistication regarding international trade negotiations to be sure they get a fair deal.

Fairness is nearly as big a part of any international trade agreement as the potential exported and imported products and services that are being discussed in the negotiations.

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