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Trade preferences and differential treatment of developing countries : a selective survey

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Author Info
Hoekman, Bernard
Ozden, Caglar

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Abstract

Nonreciprocal trade preferences and provisions in the GATT/WTO that allow developing countries greater leeway to retain or use protectionist policies are two of the central planks of so-called special and differential treatment (SDT) for developing countries in the multilateral trading system. The authors survey the literature on the rationales, institutional features, and economic effectiveness of SDT. A large literature has emerged on SDT in the past 50 years, by both proponents and opponents. They summarize a number of key contributions on the subject, with a special emphasis on the evaluation of the impact of SDT, especially preferential market access. The issue of SDT has become very topical again, following a period during which it was viewed as an outdated concept for the multilateral trading system. The authors therefore devote attention as well to a number of recent contributions that discuss (1) whetherthere is a continued need for SDT, and (2) 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. The authors conclude that those who questioned the value of unilateral preferences have proven to be prescient.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3566.

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Date of creation: 01 Apr 2005
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Handle: RePEc:wbk:wbrwps:3566

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Keywords: TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Environmental Economics&Policies; Economic Theory&Research; Trade Policy; Trade and Regional Integration;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  5. repec:rus:hseeco:123712 is not listed on IDEAS
  6. Finger, J M, 1975. "Tariff Provisions for Offshore Assembly and the Exports of Developing Countries," Economic Journal, Royal Economic Society, vol. 85(338), pages 365-71, June. [Downloadable!] (restricted)
  7. Hoekman, Bernard & Djankov, Simeon, 1997. "Determinants of the Export Structure of Countries in Central and Eastern Europe," World Bank Economic Review, Oxford University Press, vol. 11(3), pages 471-87, September.
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  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. [Downloadable!]
  11. Pelzman, Joseph & Schoepfle, Gregory K, 1988. "The Impact of the Caribbean Basin Economic Recovery Act on Caribbean Nations' Exports and Development," Economic Development and Cultural Change, University of Chicago Press, vol. 36(4), pages 753-96, July.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Doha Merchandise Trade Reform: What’s at Stake for Developing Countries?," CEPR Discussion Papers 5156, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. J. Francois & B. Hoekman & M. Manchin, 2005. "Preference Erosion and Multilateral Trade Liberalization," Tinbergen Institute Discussion Papers 05-073/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  3. Elisa Gamberoni, . "Do unilateral trade preferences help export diversification? An investigation of the impact of European unilateral trade preferences on the extensive and intensive margin of trade," HEI Working Papers 17-2007, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  4. 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. [Downloadable!]
  5. Alessandro Antimiani & Piero Conforti & Luca Salvatici, 2008. "Measuring Restrictiveness of Bilateral Trade Policies: A Comparison between Developed and Developing Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 207-224, July. [Downloadable!] (restricted)
  6. Hoekman. Bernard & Prowse, Susan, 2005. "Economic policy responses to preference erosion : from trade as aid toaid for trade," Policy Research Working Paper Series 3721, The World Bank. [Downloadable!]
  7. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2007. "Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?," Economics & Statistics Discussion Papers esdp07036, University of Molise, Dept. SEGeS. [Downloadable!]
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  8. Mehdi Abbas, 2007. "Les rapports Nord-Sud à l'OMC. Entre différenciation et espace politique pour le développement," Post-Print halshs-00200561_v1, HAL. [Downloadable!]
  9. Manuela Goretti & Hans Weisfeld, 2008. "Trade in the WAEMU: Developments and Reform Opportunities," IMF Working Papers 08/68, International Monetary Fund. [Downloadable!]
  10. Andrew Brown & Robert Stern, 2005. "Concepts of Fairness in the Global Trading System," Working Papers 544, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  11. Hart, Chad E. & Beghin, John C., 2006. "Rethinking Agricultural Domestic Support under the World Trade Organization," Staff General Research Papers 12510, Iowa State University, Department of Economics.
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  12. Manchin, Miriam, 2005. "Preference utilization and tariff reduction in European Union imports from African, Caribbean, and Pacific countries," Policy Research Working Paper Series 3688, The World Bank. [Downloadable!]
  13. Borchert, Ingo, 2008. "Trade diversion under selective preferential market access," Policy Research Working Paper Series 4710, The World Bank. [Downloadable!]
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