LDC
The Agreement Establishing the WTO recognizes the need for positive efforts to ensure that developing countries, and especially those that are least-developed, share in the growth of international trade.
Over the years, trade openness has contributed considerably to enhancing developing countries’ participation in the global economy
Figure 1: Volume of exports of developed, developing and transition economies: 1990-2009
(Index, 2000=100)
WTO Secretariat estimates
The Benefits of Free Trade for Developing Countries
Increased Resources
Developing countries can benefit from free trade by increasing their amount of or access to economic resources.
Improved Quality of Life
Free trade usually improves the quality of life for a nation’s citizens. Nations can import goods that are not readily available within their borders. Importing goods may be cheaper for a developing country than attempting to produce consumer goods or services within their borders. Many developing nations do not have the production processes available for converting raw materials into valuable consumer goods.
Better Foreign Relations
Better foreign relations are usually an unintended result of free trade. Developing nations are often subject to international threats. Developing strategic free trade relations with more powerful countries can help ensure a developing nation has additional protection from international threats. Developing countries can also use free trade agreements to improve their military strength and their internal infrastructure, as well as to improve politically.