Strengthening capability of developing countries in export promotion

Promoting export marketing by developing countries

Context

Export promotion and marketing activities are complementary to, and are an important element in, national efforts to build competitive export supply capabilities and to penetrate foreign markets. The successful penetration of international markets require national capabilities to identify export opportunities through trade intelligence and market research, to develop and adapt exportable products and services to consumer needs and tastes in foreign markets, and to apply effectively marketing and promotional techniques and measures to exploit the identified export opportunities. Many developing countries especially the least developed countries, lack however such capabilities. For most developing countries efficient trade support services and facilities, in areas such as trade information and market research, product development and design, quality management, packaging, export finance, and export management training, are therefore essential for export success. These services and facilities are particularly important to small and medium-sized enterprises in the early stages of their export development efforts.

Widening gaps between developing country export performance and international competitiveness call for stronger emphasis on direct policy action in respect of structural production and investment conditions and reinforced international support. Price and preferential incentives alone have not brought about a broad turnaround where the production basis was not sufficiently developed to expand exports. Nor have they been sufficient in such cases to attract large-scale foreign investment. Attention could be given to a supply-side emphasis for such treatment, providing space in the multilateral trade disciplines for appropriate development policies essential for the development of a competitive supply capacity. Special and differential treatment in WTO Agreements, such as the Agreement on Subsidies and Countervailing Measures, needs consideration in order to better reflect the developing countries' needs.

Implementation

While a number of developing countries have been able to establish a range of export institutions, both public and private, which provide their exporters with effective trade support services and facilities in all or some of the areas mentioned above, the needs of the least developed countries remain particularly great in this field.

Claim

There is a need for increased technical cooperation to strengthen the institutional capacity of developing-countries in export marketing and promotional activities, particularly with respect to the establishment and strengthening of public and private sector trade services institutions and facilities, and for human resource development including personnel training to manage export trade development and promotion programmes as well as all aspects of export marketing. Technical cooperation is also needed to assist in filling the gap in trade information flows between developing countries and world markets. The provision of databases and appropriate methodologies for the organization of effective trade information services in developing countries, either in a traditional manner or using technologically advanced systems and networks, is a high priority area.

A number of developed countries have established national Import Promotion Offices to provide market information and trade promotion services and facilities to exporters (and export institutions) of developing countries seeking to enter their markets. Assistance of this kind is particularly important for least developed countries – which have particular needs, especially in product and market diversification – to support their efforts to create an increased export capability. More developed countries should establish import promotion assistance programmes, especially for least developed countries. This would be one way of assisting these countries to meet the marketing and export promotional challenges posed by the continuing globalization of international trade.