Smaller Countries in South Asia Poised to Reap Massive Trade Gains from Liberalization
Trade openness benefits all countries, especially smaller ones, due to their reliance on trade. However, smaller countries face challenges in convincing governments to open up markets due to immediate losses and lobbying for protection. Closer association with larger countries can bring gains often overlooked. Strong leadership is crucial for successful trade reforms. In South Asia, the South Asia Free Trade Area (SAFTA) aims to promote trade liberalization, but progress is slow. Smaller countries benefit from cheaper goods and access to larger markets through trade liberalization, while import-competing firms may see mixed results.