A recent study carried out by the World Trade organization has revealed a range of concerns regarding non-reciprocal preferential arrangements between developed and developing countries. This type of arrangement occurs when one country offers access to exports originating from another country on terms that are favourable than the existing tariffs and without requesting reciprocal market access (Wood, 2015). This type of arrangement differs from the popular preferential arrangements where market access is offered to signatories on a reciprocal basis. The study was conducted in March 2015 and the findings recorded in print. Based on the study, non-reciprocal market preferential arrangements are an advantage to most developing countries but pose a threat to the recipient developed countries.
The research comprised executive interviews with trade organizations of a selected number of developed and developing countries. The questions used in the survey were open-ended to give room for thorough analysis of the current situation. The respondents were able to give an unlimited set of opinions on the issues surrounding the non-reciprocal market arrangement. The responses from members of the developed and developing countries who participated in this research brought to surface issues that have plagued and continue to plague world trade. It discovered that several industries in developed countries were struggling to stay afloat with this policy at work. Additionally, despite the non-reciprocal trade arrangements extended to developing countries, most of them posed exuberant tariffs on agricultural and other products making an entrance into their markets from other developing countries (Wood, 2015).
The target audience for the survey were the industries in developed countries that have been adversely affected by the non-reciprocal trade arrangement as well as the selected developing countries that have free access to the global market. The most affected industries were the textile industries and the agricultural produce industries. The target audience was comprised of nations that have adopted the non-reciprocal trade arrangement as a means of financially supporting developing countries through a transfer initiative commonly termed to as trade not aid' to advocate for indirectly helping developing countries to achieve economic stability (Conconi & Perroni, 2015). Industries in developed countries like the United States were slowly crumbling as they tried to compete with the low prices of goods that make access into the international market. The other category of the target audience are the non beneficiary countries in this non-reciprocal trade arrangement, most of whom have confessed to having their goods discriminated against because they do not belong to the preference categories (Conconi & Perroni, 2015).
Agricultural and textile industries were facing hard times with this trade arrangements. The arrangement was lowering the rates of domestic production in most developed countries that served as recipients in the arrangement. In this essence, the arrangement came with heavy costs to the recipient countries and at the expense of local industries. Additionally, non-preference countries were having a difficult time accessing the global market with their products, a situation that was affecting their economic growth and having a negative impact on employment rates (Wood, 2015).
To represent the entire population, a sample population size was picked from 5 developing, non-developing, as well as non-preference countries. The total number of respondents involved was 60. The respondents comprised people who were members of the trade organizations in their respective countries as well as people who owned or managed industries that were likely to be affected by the non-reciprocal arrangement. The sampling was well calculated to ensure that the participants of this research were knowledgeable of the trade organization and the factors affecting it. The research aimed to collect accurate and specific information regarding global trade and the experiences of global traders. The accuracy of the information gathered is quite undoubtedly owing to the fact that the information was issued by professionals who have experience in global trading. Professionals in this research were able to explain the non-reciprocal arrangement phenomenon, its present effects and what the future holds for this policy.
The methods used to administer the research include physical one on one interviews and questionnaires. Questionnaires were sent out to participants through their email addresses. The respondents were required to willingly fill the online questionnaire and exhaust the questions as much as possible. Other questionnaires were issued out through trade associations and industry management groups. Physical interviews by a team of researchers were also carried out regionally. This especially was conducted on participants who were industrial managers of the Agricultural and textile industries which proved to be the most affected by the policy. The physical interview provided a good chance for one on one interaction and capturing of personal opinion from the respondents. This method also increased accuracy and overall quality of responses. It's. However, time-consuming especially due to the geographical constraints and availability of the respondents.
The general public opinion of the non-reciprocal trade between developed and developing countries revels a worrying situation among recipient nations. While this trade has increased access to global market platforms for many developing nations, it's threatening to sink particular industries in developed nations. Additionally, non-preference countries have been left out, and their industries are on the verge of collapse. It's important for developed countries to standardize the extent to which this type of trade is carried out such that it does not negatively affect local industries as well as non-preference countries. The initiative to support developing countries is a noble one, but it should not come at the expense of breaking other industries that have put a lot of hard work in production. While most developing countries such as India, Nigeria, and Ghana perceive this policy as one that is helpful to them, industries in recipient countries are crying foul (Conconi & Perroni, 2015).
In conclusion, the survey brought to light the realities surrounding non-reciprocal trade policy. Both the advantages and disadvantages of this policy can be weighed, discussed and a solution sought to correct the areas that may have been ignored. While the number of respondents was small, it's without a shred of doubt that the research gave an accurate representation of the realities of the global trade. This is particularly due to the professionality and experience of the respondents as well as the quality of the questions administered. Question structure was effective and provided an opportunity for a good response from the population sample. There was a geographical limitation which was solved by the utilization of communication technologies such as emails. The time frame for conducting the research and the methods of administering and collecting response met the statistical threshold and therefore making the research statistically effective. Due to the appropriateness of the methods of sampling, administering, data collection and analysis of collected responses from the sample audience, the results of the survey can be said to be credible in highlighting the public opinion of the non-reciprocal trade policy.
Conconi, P., & Perroni, C. (2015). Special and Differential Treatment of Developing Countries in the WTO. World Trade Review, 14(01), 67-86. http://dx.doi.org/10.1017/s147474561400041x
Wood, A. (2015). World Trade Report 2014 Trade and Development: Recent Trends and the Role of the WTO World Trade Organization, 2014. World Trade Review, 14(03), 546-548. http://dx.doi.org/10.1017/s1474745615000269
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