Globalization and Competition from China and India
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Figure 9.6 Number of Agadir Country Exports Experiencing Import Surges from China and India, by Country, 1998–2006
number of products with import increases of more than 30% over the preceding 3 years
4
3
2
1
0 1998
1999
2000
2001
Jordan Egypt, Arab Rep. of
2002
2003
Morocco Tunisia
2004
2005
2006
Agadir average
Source: World Bank staff based on UN Comtrade database. Note: Only products that account for at least 0.3 percent of total imports are considered.
illegal dumping. The slight increase in surges from China and strong volatility in surges from India are consistent with the pattern of Asian imports into the European Union and United States.
Gaining Access to Overseas Markets Breaking into overseas markets often presents a major challenge. Exporters face additional trade transactions costs in the form of border tariffs, transport expenses, and regulatory compliance costs. Many developing countries benefit from preferential market access in high-income countries, but meeting rules-of-origin requirements and other import regulations can still limit the benefits of the preferences and shape the structure of trade flows.
Access to the Markets of the European Union and the United States Firms that face increasing competition must be able to exploit opportunities for sales in overseas markets as part of the adjustment process. The clothing sector is a key source of exports for countries in the MENA region, primarily Egypt, Jordan, Morocco, and Tunisia. The sector was subject to very gloomy predictions concerning the impact of China on