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Trade for Sustainable Development

Background

As well as the important benefits associated with trade liberalisation – such as increased national income, increased efficiency in resources allocation, the spread of more efficient and environmentally friendly technologies, there are also significant negative social and environmental impacts.  Trade expansion can exacerbate problems of commodity dependence, resource depletion and environmental degradation.  And the benefits of increased national income do not always accrue to the poorest sections of society.

The global trend towards trade liberalisation places pressure on developing countries to liberalise their economies. Thus, identifying linkages between trade liberalisation and sustainable development is a high priority. But these linkages are complex as there are various levels of trade liberalisation: from unilateral liberalisation to bilateral, regional and multilateral trade agreements.

The impacts can be different between regions and countries.  Trade liberalisation is longer just about tariff reduction, but involves such issues as investment, intellectual property rights, environmental and labour rules, and competition policy, whose impacts on sustainability need to be fully understood.

Objectives

We are exploring the linkages between trade liberalisation and sustainable development with a special focus on poverty reduction. The aim of this initiative is to achieve:

  • a deeper understanding of the cost and benefits of trade liberalisation in the context of developing countries as well as
  • a better understanding of how trade policies and sustainable development can be mutually supportive.
Partners and Donors

Royal Danish Ministry of Foreign Affairs (Danida)

Further information

To find out more about this initiative please contact:

Annie Dufey, IIED


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