Free Trade Agreement Benefits Developing Countries

The “young industry” argument was then invoked to give intellectual legitimacy to the protection of the industry. Thus, immediately after the Second World War, virtually all developing countries committed themselves to import substitution. Only Hong Kong, which owned the British and maintained them as a free port, remained a free trade unit. Non-traditional trade barrier measures are more difficult to quantify and assess, but they are gaining in importance due to the decline in traditional customs protection and barriers such as import quotas. Anti-dumping measures are on the rise in both developed and developing countries, but are disproportionately affected by developing countries. Another major obstacle is the requirement to comply with the technical and hygienic standards applicable to imports. They entail costs for exporters that may outweigh the benefits to consumers. .