The Erosion of Tariff Preferences: The Impact of U.S. Tariff Reductions on Developing Countries
AbstractThe Generalized System of Preferences (GSP), the program instituted in 1976 that allows developing countries to export thousands of products to the United States duty-free, is an important element of U.S. efforts to promote economic growth in the developing world. However, since the program's inception U.S. tariff rates have fallen significantly, thus potentially reducing the ability of the GSP program to encourage U.S. imports from beneficiary countries. This paper estimates the impact of U.S. tariff reductions on imports from the developing world using a panel of import data from 76 countries and 2,389 GSP-eligible products between 1998 and 2001. It finds that reductions in U.S. tariff rates have diminished imports from developing countries significantly, although some countries have been impacted more than others.
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Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0507001.
Length: 22 pages
Date of creation: 18 Jul 2005
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Note: Type of Document - pdf; pages: 22
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Generalized System of Preferences; GSP; Trade Diversion; Preferential Tariffs;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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NBER Working Papers
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