Definition. Trade policy allowing domestic providers (of goods and/or services) to compete more freely in world markets and foreign providers to compete more freely in domestic markets. This section focuses on trade liberalization from a facilitation angle.

Overview. Trade liberalization promotes growth. After years of efforts in multilateral trade liberalization, as well as from unilateral and regional liberalization, the potential gains from eliminating remaining trade barriers are still considerable. As the first generation of trade reforms, consisting mainly of easing of border restrictions to merchandize trade and liberalization of foreign exchange markets, have been or are being implemented by the majority of developing countries, it is becoming obvious that their successful integration into the world economy increasingly depends on the realization of a series of complex, behind-border measures that fall under the heading of trade facilitation, turning trade facilitation as a major part of the World trade agenda. The proper implementation of trade liberalization efforts (e.g. establishing multiple Free Trade Agreements) require particularly well crafted implementation arrangements to ensure that the intended impact materializes. The provision of greater access to markets, for both goods and service providers plays an equally major role in stimulating the access to foreign markets.

Where to start. Trade Liberalization and Poverty: a Handbook. GFP Note on Trade Liberalization Agreements

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