Helping developing nations:Duty Free Tariff Preference Scheme for LDC’s

There are some characteristics of developing nations, relatively low per capital GDP, relatively short life respectancy, lower rates of adults literacy, export tend to focus on primary products, manufactured goods, majority of exports go to advanced nations, most imports originate in advanced nations and trading among developing nations is minor. In order to help developing nations trade,  there are some institutions and policies exsiting. "Duty Free Tariff Preference Scheme for LDC's"(by India) is one of them.


India's duty free scheme for LDC's came into effect on 13 August 2008. Under the scheme, import duties are being removed for 85 percent of all tariff lines. Implementation of scheme is gradual: tariffs are removed over a period of 5 years, with a 20 percent reduction in the level of applied tariff per year. for additional 9 percent of tariff lines, LDC's are granted preferential rates, with margins of preferences ranging from 10 to 100 percents. The remaining 6 percents of tariff lines are excluded from the scheme.①


All LDCs are eligible to participate in the scheme. In order to be a beneficiary, LDCs have to submit a letter of intent and must provide information on signatories of rules of origin certificates.①


India also accords perferential market access to LDC bangladesh, Bhutan and Nepal under the South Asia Free Trade Arrangement. In addition, Lao PDR and Bangladesh receive LDC benefits under the Asia Pacific Trade Agreement.①


It's no doubt that, India succeeded in this policy. It is not only helps the developing nations for export but also helps India himself to get the cheap natural resources for its gem and jewelry industry. In addition, it also gets the crude oil and raw materials for industrial use from  many African countries.


①：The specific information from :http://esango.un.org/ldcportal/web/10447/-/preferential-market-access-india%E2%80%99s-duty-free-tariff-preference-scheme-for-ldcs?groupId=19799&redirect=http%3A%2F%2Fesango.un.org%2Fldcportal%2Ftrade%2Fism%3Bjsessionid%3DF52AAA4AF63A3B17E2660F5C489EDEBA%3Fp_p_id%3D175_INSTANCE_8WhpzgaCD1zM%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-6%26p_p_col_count%3D1