Benefits of trade for developing countries

Trade can help boost development and reduce poverty by generating growth through increased commercial opportunities and investment, as well as broadening the productive base through private sector development.

Between 2000 and 2008, GDP per capita increased from $325 to over $625 in Least-Developed Countries. Much of this can be attributed to an increase in trade and foreign investment.

Trade openness expands business opportunities for local companies by opening up new markets, removing unnecessary barriers and making it easier for them to export.

Emerging economies like China, Brazil, India and South Africa are steadily catching up with developed countries, thanks to increased trade. The GDP per capita increase of G20 developing countries stands at 115% for the decade 2000-2010.Trade encourages innovation by facilitating exchange of know-how, technology and investment in research and development, including through foreign direct investment.