Benefits Of Trade Liberalization

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The world trade system has been benefited by the trade liberalization, be it unilateral or regional liberalization. Trading activity between the developing countries has grown rapidly, with 40 percent of their exports now going to other developing countries. Progress has been very impressive for several developing countries in Asia and examples can be seen in China and India since they have embraced trade liberalization and other market-oriented reforms, and also of higher-income countries in Asia – like Korea and Singapore – that were themselves poor up to the 1970s. On the other hand, progress has been less rapid for many other countries as they did not lower their own barriers to trade. Examples can be seen in Africa and the Middle East.…show more content…
However, it only happened in a small subset of cross-national differences that provoked trade disputes that are extremely difficult to resolve. Trade liberalization has altered the world economic landscape. The extent of trade liberalization has been well documented but the effects on the consumer welfare have not. The consumers in lesser-developed countries are exposed to higher risks by unsafe or inappropriate products, inappropriate or inadequate information, and inadequate redress systems. Trade liberalization in developing countries may weaken consumer welfare in its beginning stages if proper protectionistic measures are not in place. Nevertheless, with trade liberalization, consumers in developing countries may gain with increased consumption possibilities, cost savings, innovation and greater choice alternatives. Since consumerism has remained in its infancy in developing countries, governments are under continuous pressure from the International Organization of Consumers Unions (IOCU) to protect the interests of consumers, especially protection from fraudulent claims or unsafe products. While in the lesser-developed countries, the consumers have little or no protection, education, or information about the market. Thus, these issues should…show more content…
This act brings justice closer to the consumer by informalizing the legal process. The fact that no court fees need to be aid and that all disputes have to be settled within a period of 90 days speak volumes for the positive aspects of this Act. As India moves towards a new era of trade liberalization, the unification of her markets with the global markets becomes more than a mere dream. Nevertheless, the consumer has to bear the negative consequences in the market and hence the recommendations of the Working Group should be incorporated under Consumer Protection Act 1986 so that the consumers will not be the sufferers in this one-sided development in economic. One of the recommendations of the Working Group include the role of consumer organisation in encouraging the consumer to file class action complaints in cases involving large interest in the relevant consumer forum, as is being done in the developed

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