Empirical Study of Trade Negotiations

1.0 Title


The proposed title for the proposed research is “Empirical Study of Trade Negotiations.” This proposal will present background information and details about the trade negotiations and relationships between developed and developing countries. Furthermore, this will present the background of the proposed study, particularly the expected outcomes or objectives, together with the different approaches, strategies and instruments to be used in implementing the study.


2.0 Background of the Study


In contemporary world of trade, following the World War II, the developed countries have reduced their tariffs in the framework of the successive rounds of trade negotiations on the item-by-item basis. Thus, the said negotiations involved a compromise between the principles and aspects that are related with the reciprocity and non-discrimination. With the developing countries offering few tariff concessions, the developed countries exchanged such concessions on product interest to them. As a result, the developing countries take advantage of the tariff reductions, which offer them advantages, which made them to made under the most favoured-nation clause. During the early 1960s, the tariffs on different manufactured goods imported from developing countries had declined to considerable extent, even though remaining higher than the developed countries, overall average on manufactured goods. At the same time, all of the said tariffs enable to show a tendency towards the escalation from the lower to higher degree of fabrication, by this means, discriminating against processing activities in the developing countries (Balassa n.d.).

Another issue to consider is the trade relations between developed and developing countries which affect the prospects for trade liberalization in general manner. During the last session of Contracting Parties in November 1984, the developing member countries of GATT issued a statement which stated their main views, where in: “ (1) they considered that the industrial countries had not observed the principles of GATT ministerial declaration to make determined efforts to resist protectionist pressures and avoid measures inconsistent with GATT principles; (2) they argued the abolition of restrictions inconsistent with the GATT and the completion of the GATT work program agreed by the ministerial meeting; and (3) they declared their intention to participate in negotiations that would concentrate on removing restrictions on merchandise trade impeding developing countries’ exports, without extending the scope of GATT rules to cover new areas such as services. (Anjaria & Kirmani 1985)”


3.0 Objectives of the Study


The main aim of this study is to study the trade negotiations and relationships between the developed and developing countries. In line with this, the following are the specific objectives of the study:

·         to identify the different interests of developed and developing countries in trade policies and trade relationships;

·         to identify the differences between trade policies and regulations in developed and developing countries; and

·         to present the effects of trade and other macroeconomic parameters in developing countries.


4.0 Methodology


The research design used in this study is the descriptive approach. A descriptive research intends to present facts concerning the nature and status of a situation, as it exists at the time of the study (Creswell, 1994; Saunders et al, 2003). It is also concerned with relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing.

This study will adapt an interpretivist approach in research. Interpretivism is the necessary research philosophy for this study because it allows the search, of the ‘details of the situation, to understand the reality or perhaps a reality working behind them (Remenyi & Williams 1998).

Because of the limited time and other resources of the researcher, the research will mainly use secondary data. This will be gathered from different resources such as online and offline articles, textbooks, journals, theses, government websites and database and other government documents.


5.0 References


Anjaria, S, Kirmani, N & Petersen, A 1985, Trade Policy Issues and Developments, International Monetary Fund.


Balassa, B, Trade Between Developed and Developing Countries: The Decade Ahead, http://www.oecd.org/ (Accessed 16 June 2010).


Creswell, J W 1994, Research design: Qualitative and quantitative approaches. Thousand Oaks, Sage, California.


Saunders, M, Lewis, P & Thornhill, A 2003, Research Methods for Business Students, 3rd Ed., Prentice Hall Financial Times, London.





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