The Impact of Preference Erosion on Middle-Income Developing Countries
AbstractPreference erosion has become an obstacle to multilateral trade liberalization, as beneficiaries of trade preferences have an incentive to resist reductions in mostfavored- nation (MFN) tariffs. This study identifies middle-income developing countries that are vulnerable to export revenue loss from preference erosion. It concludes that the problem is heavily concentrated in a sub-set of preference beneficiaries-primarily small island economies dependent on sugar, banana, and-to a lesser extent-textile exports. Accordingly, measures to help mitigate the impact of preference erosion can be closely targeted at the countries at risk.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 04/169.
Date of creation: 01 Sep 2004
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