Expanding trade allows developing countries access to capital and markets and can catalyze greater investment in those countries.
For the least-developed countries, the benefit of U.S. aid is too often overshadowed by the impact of U.S. trade policy. For example, in 2008, the United States collected nearly $1 billion in import taxes on Bangladeshi and Cambodian exports, while aid to those countries totaled just over $200 million. This lack of alignment can be corrected with the enactment of a U.S. global development strategy that coordinates aid and trade policies to maximize the benefit to developing country economies.
IGD's Trade objectives
Expand access to the U.S. market
Grant developing countries duty-free, quota-free access to the U.S. market. Barriers in sectors such as agriculture, textiles and manufacturing limit these countries' economic growth.
Improve trade preference programs
Merge trade preference programs into a single, permanent program with a streamlined set of rules to increase transparency and expand market access to stimulate investment and production in developing countries.
Build capacity in developing countries
Invest in "aid-for-trade" assistance programs to help developing countries loosen constraints, take advantage of market opportunities and realize their economic potential.
Learn more about IGD's Trade objectives
Trade preferences working group proposals
Two sets of recommendations endorsed by IGD and business associations, development organizations, think tanks and companies
White paper on trade and development in Africa
March 1, 2010
Sub-Saharan Africa faces unique challenges in harnessing the power of trade for development and poverty reduction. While expansive and reliable market access is necessary to development, it is not always sufficient. Complementary investments to ease existing barriers to production and trade are critical. This paper describes ways the USG could integrate its aid programs and trade policy to more effectively promote development.
Trade preference improvement proposal
December 1, 2009
This proposal for improving U.S. trade preference programs outlines ways to ensure that our preference programs effectively promote development. Programs must be reliable, simple to use, sensitive to beneficiaries’ vulnerabilities and linked to targeted policies and programs to build capacity.
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