challenges

• Uneven development under WTO rules 

  • The WTO’s enforcement of global trade rules has contributed to uneven development 
  • ELDCs face difficulties in engaging in protectionist practices due to WTO regulation
  • However, richer countries (like US and EU countries) can use subsidies and other measures to protect politically sensitive sectors, such as agricultural and steel, undermining the concept of free trade
• Different benefits of free trade

  • Different countries benefit from free trade in different ways, exacerbating inequality 
  • While some countries, particularly more developed countries, are able to leverage on their large markets and resources in negotiations, ELDCs find themselves at a disadvantage 
  • Trade liberalisation benefits EMDCs more since they can export manufactured goods, whereas ELDCs are often restricted to exporting raw materials
• Leverage of EMDCs in trade negotiations

  • EMDCs have more leverage in trade negotiations due to their larger market and resources 
  • EMDCs are more successful in global trade because they have more resources and bigger markets to use as bargaining chips in trade negotiations, leaving ELDCs at a disadvantage 
  • While EMDCs are happy to trade manufactured goods with one another, they mainly seek raw materials from ELDCs, limiting their development opportunities