High trade costs-for transporting goods and getting them across borders- have a negative impact on prospects for expanding African trade, making producers less competitive.
While reducing tariffs and other trade barriers remains important, and must continue as part of the liberalization process, many
African countries will not be able to benefit from reform unless trade costs are reduced.
Bottlenecks in the form of regulatory and administrative constraints to transport and transit must also be reduced. Customs
procedures, duty drawback schemes, and other requirements push up the cost of trade.
Which statement would MOST LIKELY be claimed by the author of this passage?
es )
A)
That man-made trade barriers are the biggest challenge facing Africa's
international trade success.
That agricultural, industrial, and service sector reforms must be made for
Africa to trade internationally.
B)
C)
The solution to Africa's international trade problems must be dictated by
the United Nations and the World Trade Organization,
D)
Environmental factors such as drought and desertification are the major
challenges facing Africa's international trade development.