The era of colonialism is over. However, exploitative trade practices by First World countries against poor nations are still alive and kicking. Overly biased import policies by richer nations, who weave a complex web of tariffs and duties, set the tone of discrimination against Third World countries. For instance, Bangladesh-made garments entering the US market are slapped with duties and taxes/tariffs that are in general 20 times higher than those that UK-made garments have to face. Similarly, imported Indian garments have to face import tariffs of around 19%, as compared to the 0-1% charge applicable on European and Japanese garment imports. Such discrimination debilitates the value additions made by producers belonging to poor countries. According to internal estimations of Brazil, its agricultural exports’ earning has reduced by more than $10 billion because of trade barriers in the West. For Mozambique, exports to EU are lower by $100 million a year because of restrictions tha...
Dr. Arindam Chaudhuri
(An IIPM Think Tank Blog)