Trade is recognized as an engine for inclusive economic growth and poverty reduction that contributes to the promotion of sustainable development both by the Addis Agenda of Action (para. 82) and the 2030 Agenda (para. 68). Accounting for a significant share of low-income countries' GDP, international trade can be an important source of finance to both the private sector and the public sector in developing countries. Trade growth enhances a country’s income generating capacity, which is one of the essential prerequisites for achieving sustainable development (in line with SDG target 17.11). Trade can also serve as an effective means to facilitate the diffusion of technologies around the world, including of vital green technologies.
A predictable trading environment (as envisaged by SDG target 17.10) can help to promote long term investments that could further enhance the productive capacity of a country. An increase in exports enhances the country’s income growth at least at the aggregate level. While an increase in imports at competitive prices can improve consumer surplus and the prospective competitiveness of domestic producers that use imported intermediates. Market access conditions, both foreign market access for a country’s exports and domestic market access for imports, are thus an important determinant of the effectiveness of trade as a means of implementation.