Benefits of International Trade to Economic Development

Stronger Open Trade Policies Enable Economic Growth for All 

Trade is central to ending global poverty. Countries that are open to international trade tend to
grow faster, innovate, improve productivity and provide higher income and more opportunities to their people. Open trade also benefits lower-income households by offering consumers more affordable goods and services. 

These projects and others help create a global trading system that is more open, reliable and predictable for all.

Key strategies in this agenda include:
· Trade facilitation, logistics, and border management: helping countries integrate into global value chains (GVCs) through targeted reforms and investments;

· Trade agreements: advising countries on their technical details and supporting implementation of commitments made through these agreements;

· Emphasizing trade and competitiveness at the core of national development strategies

· Aid for Trade: Among multilateral institutions, the Bank Group is the largest provider of “Aid for Trade,” a multilateral initiative designed to assist developing countries, especially low-income countries, spur growth by integration.

· Markets and competition policy: encouraging growth and shared prosperity by opening and transforming markets.

In 2017, trade volumes grew by 4.3%, the fastest rate in 6 years. Behind increased trade levels are countries whose GDP is growing, companies who are trading goods across borders and citizens who can access goods and services at lower prices. 

To further enhance global trade, governments address trade obstacles by designing and implementing policies that maximize competitiveness, increase connectivity, and facilitate trade. In line with twin goals of eradicating extreme poverty and increasing shared prosperity.

The reductions in trade-related administrative costs helped strengthen the business environment and reduced the costs of doing business in the country. 

Some Advantages of International Trade.

· increased revenues. ... 

· Decreased competition. ... 

· Longer product lifespan. ... 

· Easier cash-flow management. ... 

· Better risk management. ... 

· Benefiting from currency exchange. ... 

· Access to export financing. ... 

· Disposal of surplus goods 

· trade competitiveness and diversification;

· trade facilitation and transport logistics;

· support for market access and international trade cooperation; and

· managing shocks and promoting greater inclusion (e.g. trade and poverty; trade-gender linkages).

The Trade Facilitation Support Program (TFSP), which includes support through an IFC-led Tripartite trust fund, was launched in June 2014 with support from nine development partners – Australia, Canada, EU, Norway, Netherlands, Sweden, Switzerland, UK, USA –totaling US$35 million. The TFSP provides implementation support for countries seeking assistance in aligning their trade practices.

The private sector is increasingly interested in ensuring that free trade is protected and helps support business opportunities including entry and growth for SMEs and MSMEs as well as participation in global value chains.