Feifei Ma

Introduction Currently， free trade is a main trend around the world. The British buy coffee which imported from Brazil or some other coffee-growing countries， for it is not yielded at local place. The supply for sports car of Germany or Italy come from foreign sources， like fuel and lubricants. The well-being and real income will definitely decrease， if cutting down these imports. （Caves， Frankel， & Jones， 2007， P13）. Therefore， free trade not only influences our life， but it could also bring different results to the world， especially for developing countries. Though opening a countrys door will make it suffer many difficulties and challenges， it is significant that free trade will also bring opportunities to developing countries in areas such as economics and politics. This essay， analysed through trade theories， focuses on the consequences of free trade for developing countries.

【中圖分類號】 J209.2 【文獻標識碼】 A【文章編號】 2236-1879（2018）14-0194-01

Main body

Free trade has become a significant part of the world economy over the past several decades. Because free trade could develop economic and pushes politic relationships for each country. The key for the agreements were three parts： General Agreement on Trade in Services （GATS）， trade-related investment measures （TRIMs） and Trade Related Intellectual Property （TRIPs）. These regulations are made by a fair foundation at the first time to the international trade.

GATS is a general agreement in trade about banking， insurance， construction， air transport and professional services. Firstly， the provisions of GATS could not cover all key points of free trade services. The public power of governments restricted to utilize by authorities when they provide international services. For example， McCulloch， Winters， & Cirera （2001） inform that no matter developed countries or developing countries， government procurement just delegates to domestic firms or organizations. In other words， they did not solve the service of free trade in the key areas fundamentally. In addition， the natural person in developing countries cannot receive fair rights about permanent residency， employment and citizenship when they bring innovative services to developed countries. Secondly， the circumscription of GATS not clear when they implement on reality， and the principle of most favored countries have weak outcomes. This rule makes the LDCs forced to accept more harm from developed countries than value if they do not had advantages for service industries. On the surface， it is a preferential treatment for developing countries. Actually， it is a lure for developing countries to open their domestic markets while facilitate developed countries. Thirdly， it is unfair that the market access is make prohibitions when membership countries adopt measures to free trade services.

Obviously， the Doha round meeting had too many conditions to limit the trade and services about developing countries. In other word， if developing countries could not disclose it， the regulations of WTO will restrict the economics and benefits for LDCs. For the 18th century， LDCs would not open the door to avoid west countries trade attacks. Currently， experts and even developing countries themselves where have millions of human are skeptical policies of free trade as for the unfair rules on WTO. So， developing countries found many dangers from free trade and have to find effective paths to protect themselves and changed currently weak positions. For example， developing countries should to integrity with each others to opposite the unilateralism and the unfair rules made by WTO while support the institutions about multilateralism. In China， new international trade policies were made by leadership Deng Xiaoping in 1979， they tried to change the single closed market polices， open the market with other countries and China got a stunning boost on GDP on next few years. On the other hand， if LDCs have comparative advantages about technology and innovation for some resources， they need to develop the domestic economic via local labor and raw materials. This is the fundamental solution to the problem.

Conclusion

In conclusion， free trade could bring flourish and advancement to developing countries， but they have to find right ways and methods. When free trade triggered the economic crisis and the market distort， governments of developing countries are supposed to spend energy and time to deal issues with effective fiscal and monetary policies， rather than to deny the mistakes made by the free trade system itself. Therefore， developing countries should not have scared any dangers which may bring from free trade， they could try to utilize the chance of free trade even if they have risk and danger.

References list

Caves， R.， Frankel， J.， & Jones， R. （2007）.World Trade and Payments（tenth ed.）. Boston： Greg Tobin.

Chang， H-J. （2008）. Bad Samaritans： The Myth of Free Trade and Secret History of Capitalism， New York： Bloomsbury Press.

Irwin， D. （2009）. Free Trade under Fire （3rd ed.）. Oxford， Princeton， N.J： Princeton University Press.

McCulloch， N.， Winters， L.， & Cirera， X. （2001）. Trade Liberalization and Poverty： A Handbook. Centre for Economic Policy Research： London.

Shafaeddin， M. （2005）. Trade policy at the crossroads： the recent experience of developing countries. New York， Houndmills， Basingstoke， Hampshire： Palgrave Macmillan.

Siddiqui， K. （2016）. The Political Economy of Free Trade， WTO and the Developing Countries. Turkish Economic Review， 3 （1）， 103-121. Retrieved from http：//eprints.hud.ac.uk/id/eprint/27980/.