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Multilateral Solutions to the Erosion of Non-Reciprocal Preferences in NAMA

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Author Info

  • Roberta Piermartini
  • Patrick Low
  • Jurgen Richtering

Abstract

This paper analyzes the risks of preference erosion arising from MFN trade liberalization in manufactured products. It focuses on developing countries that receive non-reciprocal preferences in the markets of United States, EU, Japan, Canada and Australia. The paper estimates preference margins as the difference between non-reciprocal preferential rates received by individual countries and the best available (MFN or better-than-MFN) treatment received on average by all other suppliers. Most previous work on this subject has compared the preferential rates for individual countries with MFN rates alone, which the paper found to have the effect of over-stating the margin at risk from erosion following MFN reductions.The paper finds that developing countries as a whole do not loose from preference erosion following MFN liberalization, although significant gains and losses underlie the estimate of the average. Almost all least-developed countries either lose from preference erosion or are unaffected by it because their exports are already largely MFN duty-free.

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:289.

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Date of creation: Dec 2005
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Handle: RePEc:ess:wpaper:id:289

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Related research

Keywords: MFN; manufactured goods; non-reciprocal preferences; WTO; LDC; Economics; International Economic Relations; Trade;

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Citations

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Cited by:
  1. Hoekman, Bernard & Nicita, Alessandro, 2011. "Trade Policy, Trade Costs, and Developing Country Trade," World Development, Elsevier, vol. 39(12), pages 2069-2079.
  2. Marco Fugazza & Alain McLaren, 2013. "Market Access, Export performance and Survival: Evidence from Peruvian Firms," Research Papers by the Department of Economics, University of Geneva 13021, Département des Sciences Économiques, Université de Genève.
  3. DeMaria, Federica & Drogue, Sophie & Matthews, Alan, 2008. "Agro-Food Preferences in the EU's GSP Scheme: An Analysis of Changes between 2004 and 2006," Working Papers 6151, TRADEAG - Agricultural Trade Agreements.
  4. Raihan, Selim & Razzaque, Mohammad A, 2007. "WTO and regional trade negotiation outcomes: quantitative assessments of potential implications on Bangladesh," MPRA Paper 38475, University Library of Munich, Germany.
  5. Douillet, Mathilde, 2012. "Trade policy reforms in the new agricultural context: Is regional integration a priority for Sub-Saharan African countries agricultural-led industrialization? Insights from a global computable general," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126546, International Association of Agricultural Economists.
  6. Fugazza, Marco & Nicita, Alessandro, 2011. "Measuring preferential market access," MPRA Paper 38565, University Library of Munich, Germany.
  7. 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.
  8. Sam LAIRD, 2007. "Aid for Trade: Cool Aid or Kool-Aid?," G-24 Discussion Papers 48, United Nations Conference on Trade and Development.
  9. Pierluigi Montalbano & Silvia Nenci & Emiliano Magrini, 2014. "Are the EU trade preferences really effective? A generalized propensity score evaluation of the Southern Mediterranea countries’ case in Agriculture and Fishery," Departmental Working Papers of Economics - University 'Roma Tre' 0188, Department of Economics - University Roma Tre.
  10. Mathilde Douillet & Antoine Bouët, 2012. "Trade policies and agriculture in Sub-Saharan Africa: Comparative analysis in a Computable General Equilibrium framework," Sciences Po publications info:hdl:2441/45eb019724s, Sciences Po.
  11. Koopmann, Georg & Hoekstra, Ruth, 2010. "Aid for trade and the political economy of trade liberalization," HWWI Research Papers 2-22, Hamburg Institute of International Economics (HWWI).
  12. Robert Z. Lawrence & Tatiana Rosito, 2006. "A New Compensation Mechanism for Preference Erosion in the Doha Round," IDB Publications 9196, Inter-American Development Bank.
  13. Pierluigi Montalbano & Silvia Nenci, 2012. "Assessing the Trade Impact of the European Neighborhood Policy on EU-MED Free Trade Area," Working Paper Series 3112, Department of Economics, University of Sussex.
  14. Fugazza, Marco & Nicita, Alessandro, 2013. "The direct and relative effects of preferential market access," Journal of International Economics, Elsevier, vol. 89(2), pages 357-368.
  15. Douillet, Mathilde, 2012. "Trade and agricultural policies in Malawi: Not all policy reform is equally good for the poor," MPRA Paper 40948, University Library of Munich, Germany.
  16. Fugazza, Marco, 2007. "A new geography of preferences for Sub-Saharan African countries in a globalizing trading system," MPRA Paper 11575, University Library of Munich, Germany.

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