Policy Responses to Trade Preference Erosion

Author: Chris Milner
Publisher: Commonwealth Secretariat
ISBN: 9781849290098
Format: PDF, ePub
Download Now
A study that looks at how best developing countries should respond to the erosion of trade preferences caused by continuing multilateral tariff liberalisation, either through restructuring individual preference arrangements or by acting to offset the adverse effects of preference erosion.

Economic Policy Responses to Preference Erosion

Author: Bernard M. Hoekman
Publisher: World Bank Publications
ISBN:
Format: PDF, ePub
Download Now
Trade preferences are a central issue in ongoing efforts to negotiate further multilateral trade liberalization. "Less preferred" countries are increasingly concerned about the discrimination they confront, while "more preferred" developing countries worry that WTO-based liberalization of trade will erode the value of current preferential access regimes. This tension suggests there is a political economy case for preference-granting countries to explicitly address erosion fears. The authors argue that the appropriate instrument for this is development assistance. The alternative of addressing erosion concerns through the trading system will generate additional discrimination and trade distortions, rather than moving the WTO toward a more liberal, non-discriminatory regime. They further argue that prospective losses generated by most-favored-nation liberalization should be quantified on a bilateral basis, using methods that estimate what the associated transfer should have been and ignoring the various factors that reduce their value in practice (such as compliance costs or the fact that part of the rents created by preference programs accrue to importers in OECD countries). Given that many poor countries have not been able to benefit much from preference programs, a case is also made that preference erosion should be considered as part of a broader response by OECD countries to calls to make the trading system more supportive of economic development. The focus should be on identifying actions and policy measures that will improve the ability of developing countries to use trade for development.

Trade Preference Erosion

Author: Bernard M. Hoekman
Publisher: World Bank Publications
ISBN: 9780821377482
Format: PDF, Docs
Download Now
The multilateral trade system rests on the principle of nondiscrimination. Unilateral trade preferences granted by developed countries can help beneficiary countries but can create tensions between 'preferred' developing countries typically beneficiaries from pre-existing colonial regimes and other developing countries. There is also concern about the potential erosion of these preferences through trade liberalization in the importing countries, an issue that has been important in the current negotiations under the Doha Development Agenda of the World Trade Organization. 'Trade Preference Erosion' provides the information needed to make informed assessments of the benefits of trade preferences for developing countries, the risks associated with the erosion of these benefits, and policy options for dealing with these problems. The authors provide detailed analyses of specific preference programs and undertake cross-country, disaggregated analyses of the impact of preferences at the product level. Understanding the likely impacts of these programs and how those impacts are distributed is a precondition for formulating appropriate policy responses. The authors argue that such responses need to go beyond trade policies and need to include a focus on enhancing the competitiveness and supply-side capacity of developing countries. This book is a useful and informative guide for policy makers, non-governmental organizations, and others who wish to better understand the debate on the magnitude and impact of preference erosion.

Preference Erosion and Multilateral Trade Liberalization

Author: Joseph F. Francois
Publisher: World Bank Publications
ISBN:
Format: PDF, ePub, Mobi
Download Now
Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing country support for multilateral liberalization. The authors examine the actual scope for preference erosion, including an econometric assessment of the actual utilization and the scope for erosion estimated by modeling full elimination of OECD tariffs, and hence full most-favored-nation liberalization-based preference erosion. Preferences are underutilized due to administrative burden-estimated to be at least 4 percent on average-reducing the magnitude of erosion costs significantly. For those products where preferences are used (are of value), the primary negative impact follows from erosion of EU preferences. This suggests the erosion problem is primarily bilateral rather than a WTO-based concern.

Pathways from Preferential Trade

Author: T. Heron
Publisher: Springer
ISBN: 1137307927
Format: PDF, Docs
Download Now
Tony Heron examines recent global policy responses to the erosion of non-reciprocal tariff and quota preferences caused trade liberalizing by focusing on a sample of small, middle income countries which have historically enjoyed favourable access to OECD markets.

Caribbean Bananas

Author: Mr. Paul Cashin
Publisher: International Monetary Fund
ISBN: 1452769214
Format: PDF, ePub, Mobi
Download Now
This paper examines the macroeconomic effects of the erosion of trade preferences, with a focus on the export of Caribbean bananas to Europe. Estimates are made of the magnitude of implicit assistance provided over a period of three decades to eastern Caribbean countries through banana trade preferences. The value of such assistance rose until the early 1990s, and has declined precipitously since then. Using vector autoregressive analysis, the paper finds that changes in the level of implicit assistance have had a considerable macroeconomic impact, especially on Caribbean real GDP growth.

South Asian Yearbook of Trade and Development 2007 2008

Author: Centre for Trade and Development New Delhi
Publisher: Academic Foundation
ISBN: 9788171887439
Format: PDF, ePub
Download Now
A comprehensive collection of research papers, this annual from the Centre for Trade Development New Delhi discusses the debates on development impacts of trade through rigorous policy research and analysis. Reflecting South Asian perspectives on multilateral and regional trade negotiations, this yearbook examines the challenges the region, and especially India, is facing as it grows economically. This invaluable volume provides policy suggestions for trade negotiators and gives policy makers, as well as business and civil society groups, an opportunity to reflect on the potential of South Asia.

Handbook on Trade and Development

Author: Oliver Morrissey
Publisher: Edward Elgar Publishing
ISBN: 1781005311
Format: PDF, ePub, Mobi
Download Now
This timely Handbook comprehensively explores the complex relationships between trade and economic performance in developing countries, illustrating that it is not trade per se that is important but the context, at the firm, country and regional level, in which trade occurs.

Trade Preferences and Differential Treatment of Developing Countries

Author: Bernard M. Hoekman
Publisher: World Bank Publications
ISBN:
Format: PDF, ePub, Mobi
Download Now
The issue of SDT has become very topical again, following a period during which it was viewed as an outdated concept for the multilateral trading system. We therefore devote attention as well to a number of recent contributions that discuss (i) whether there is a continued need for SDT, and (ii) how this might be designed from both a development (recipient) objective and from the perspective of the trading system more generally. A major theme of the survey is that most of the issues that are debated today were already being discussed in the 1960s. We conclude that those who questioned the value of unilateral preferences have proven to be prescient.