Trade of Developing Countries , Trade during Covid-19

1. •Developing Nations trade
•Factors underlying the varied Trade performance of Developing Countries
•Trade of Developing Countries in Covid-19
Presenting by
Bilaal Muhammed Basheer

2.  Very dependent on the developing industrial
countries as export markets and source of
imports
 Exports are heavily weighted toward
primary products (agricultural goods, raw
materials) and labour-intensive
manufactures

3. Country Major export product As % of
total exports
Nigeria Oil 98
Saudi Arabia Oil 86
Burundi Coffee 80
Ethiopia Coffee 70
Venezuela Oil 69
Mauritania Iron ore 59
Chad Cotton 54

4. Factors underlying the varied Trade
Performances of Developing Countrie
External
factors
Domestic
factors
Other
factors

5. External factors
• Access to foreign
markets
• Keeping the
“market access”
factor in
perspective
• Capital inflows
Domestic
factors
• Trade policies
and participation
in the WTO
• Export
concentration
• Macroeconomic
policies
Other factors
• Interaction
among the
external and
domestic factors

6.  Tariffs
 Non-tariff barriers to trade
 Import licenses
 Export licenses
 Import quotas
 Subsidies
 Voluntary Export Restraints
 Local content requirements
 Embargo
 Currency devaluation
 Trade restriction

7. Stabilizing commodity prices
• International commodity agreements
• Production and export controls
• Multilateral contracts
Generalized system of Preferences (GSP)
But experiences with commodity agreements has
been mixed , at best, and application GSP is spotty.

8. IMPORT
SUSTITUTIONS
Trade barriers
protect emerging
domestic
industries
Poular in 1950s
and 1960s
EXPORT –LEAD
GROWTH
Focus on export
of manufactures
as engine of
growth
Become more
common
starting in
1970s

9. Incentive to cheat
Number of sellers
Cost and demand
differences
Substitute goods
Potential
competition
Face obstacles

10. “It is unavoidable that the novel coronavirus epidemic will have a considerable impact
on the economy and society”
- China’s president Xi Jinping, televised address, February 23, 2020.
•Challenging and uncertain
situations
TRADE OF DELVELOPING COUNTRIES
IN COVID-19
•COVID-19 crisis hits tourism
•Increasing
unemployment
•A reduction in Chinese supply of intermediate inputs

11. #thank you