Problems of Import Trade in Developing Countries

Problems of Import Trade in Developing Countries

Problems of Import Trade in Developing Countries

There are no flexible import policy practices in Developing Countries rather the import policy is imbalanced. Export rate is higher than the import rate. Every year the difference between export and import is becoming further higher. Unnecessary products are imported which cause unnecessary expenses. Again some products are destroyed or damaged by utilizing the products. Mainly trade policy is responsible for this situation. In Developing Countries, there is an import trade policy but there is no proper implementation of it. The problems of import policy are given below:

Problem of  Warehousing and Distribution

In Developing Countries, there is no proper system of warehousing and distribution of imported goods. As a result, some products are destroyed in the port before distribution. Again the distribution system of Developing Countries is not so good.

Ignorance of importers

Most of the importers of Developing Countries are not highly educated. So they have very low idea about international trade. Most of them are not aware of the fact that the most effective sources of importing products cheaply.

International inflation

For international inflation, the price of the products is increasing rapidly. For this reason, the price of the imported products is also increased. As a result, the import in Developing Countries is also affected.


To get tax holiday in importing, importers of our country show a low price of the imported goods to the government. These illegal activities affect importing procedure adversely of Developing Countries.

Inexperience of a commission agent

In Developing Countries most of the commission agent does not do their own dune and responsibilities properly. They are very inexperienced in foreign trade. They cannot identify the actual demand for the goods and services.

Importing of foreign culture

For importing, foreign cultures enter into Developing Countries. Foreigners try to enter their culture to other countries personally or by an industrial organization. They use advertisement and other strategies to do that.

Adverse trade condition

Most Developing Countries are dependent on foreign help and foreign products extremely. Foreigners increase the price of the products or sometimes they provide low graded products that affect our local products. Again importers are adversely affected by modifying letter of credit

Delay is getting goods

Most of the imported products are brought by cargo. In Developing Countries, there is an insufficiency of own cargo. So importer cannot import products in time.

Dependence upon loans, grants

Normally importing money is paid by exporting money. But in Developing Countries there arise trade deficit. So importers have to depend on loans, grant etc.

For these problems every year a great amount of money is wasted by importing wrong products. If these problems are solved Developing Countries import sector can fulfill the demand and also new markets for the products could be created.