Is There Effectively A Level Playing Fieldfor Developing Country Exports?

This paper investigates the extent to which recent progress in reducing impediments and distortionsto trade has levelled the playing field for developing country exports. It finds that the competitivesituation remains severely distorted by high protection rates in developed countries to domestic produc-ers in agriculture, consumer goods and other industries. Other instruments to reduce competition fromdeveloping country exports such as budget subsidies and enforcement of anti-competitive practiceswere also identified. The key sector of concern for developing countries is the agriculture industry whichaccounts for 60 per cent of budget and price transfers in OECD countries. The paper also emphasizesthat even if developing countries enjoyed favourable market access for their products, the unequalcompetitive strength of their firms should not be overlooked during multilateral trade negotiations.