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The Utilisation of EU and US Trade Preferences for Developing Countries in the Agri-Food Sector

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Author Info

  • Bureau, Jean-Christophe
  • Chakir, Raja
  • Gallezot, Jacques

Abstract

We calculate various indicators of the utilisation of preferences granted to developing countries by the EU and the US in the agricultural, food and fisheries sector. We conclude that only a very small proportion of the imports eligible to these preferences is actually exported outside a preferential regime. The rate of utilisation is therefore high. However, the flow of imports from poorest countries remains very limited in spite of rather generous tariff preferences, which leads to question the overall impact of the preferential agreements. In addition, preferential regimes overlap, and in such cases some regimes are systematically preferred to others. We use econometric estimates of the (latent) cost of using a given preference in order to explain why particular regimes are used. We focus on possible explanations, such as the cumulation rules (that restrict the use of materials originating from other countries), fixed administrative costs, and differences in the preferential margin.

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Bibliographic Info

Paper provided by TRADEAG - Agricultural Trade Agreements in its series Working Papers with number 18867.

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Date of creation: 2006
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Handle: RePEc:ags:tragwp:18867

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Web page: http://tradeag.vitamib.com/

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Keywords: International Relations/Trade;

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References

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  1. Céline CARRERE & Jaime MELO DE, 2004. "Are Different Rules of Origin Equally Costly? Estimates from NAFTA," Working Papers 200412, CERDI.
  2. Limão, Nuno & Olarreaga, Marcelo, 2005. "Trade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalization," CEPR Discussion Papers 5045, C.E.P.R. Discussion Papers.
  3. Joseph Francois & B. Hoekman & M. Manchin, 2005. "Preference Erosion and Multilateral Trade Liberalization," The Institute for International Integration Studies Discussion Paper Series iiisdp87, IIIS.
  4. Winnie Mitullah, 2000. "Food Safety Requirements and Food Exports from Developing Countries: The Case of Fish Exports from Kenya to the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1159-1169.
  5. Paul Brenton & Miriam Manchin, 2002. "Making EU Trade Agreements Work: The Role of Rules of Origin," International Trade 0203003, EconWPA.
  6. Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers 12228, Iowa State University, Department of Economics.
  7. Simeon Djankov & Caroline Freund & Cong S. Pham, 2010. "Trading on Time," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 166-173, February.
  8. Patricia Augier & Michael Gasiorek & Charles Lai Tong, 2005. "The impact of rules of origin on trade flows," Economic Policy, CEPR & CES & MSH, vol. 20(43), pages 567-624, 07.
  9. William Easterly, 2002. "The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550423, December.
  10. Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank.
  11. John C. Beghin & Ataman Aksoy, 2003. "Agricultural Trade and the Doha Round: Lessons from Commodity Studies," Center for Agricultural and Rural Development (CARD) Publications 03-bp42, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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Citations

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Cited by:
  1. Giovanni Anania, 2007. "Multilateral trade negotiations, preferential trade agreements and European Union’s agricultural policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
  2. Cooke, Edgar F. A., 2012. "Is the impact of AGOA heterogeneous?," MPRA Paper 43277, University Library of Munich, Germany.
  3. Hayakawa, Kazunobu, 2012. "Impact of diagonal cumulation rule on FTA utilization : evidence from bilateral and multilateral FTAs between Japan and Thailand," IDE Discussion Papers 372, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  4. Bouet, Antoine & Mevel, Simon & Thomas, Marcelle, 2008. "The effects of alternative free trade agreements on Peru: Evidence from a global computable general equilibrium model," IFPRI discussion papers 824, International Food Policy Research Institute (IFPRI).
  5. Escaith, Hubert & Tamenu, Bekele, 2013. "Least-Developed Countries' Trade During the "Super-Cycle" and the Great Trade Collapse: Patterns and Stylized Facts," MPRA Paper 51997, University Library of Munich, Germany.
  6. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.
  7. Agostino, Maria Rosaria & Aiello, Francesco & Cardamone, Paola, 2007. "Analyzing the Impact of Trade Preferences in Gravity Models. Does Aggregation Matter?," Working Papers 7294, TRADEAG - Agricultural Trade Agreements.
  8. Chang, Kuo-I & Hayakawa, Kazunobu, 2012. "Selection and utilization of the early harvest list : evidence from the Free Trade Agreement between China and Taiwan," IDE Discussion Papers 365, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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  1. Socio-economics of Fisheries and Aquaculture

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