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Competitive Need Limits And The U.S. Generalized System Of Preference

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  • JAMES DEVAULT

Abstract

The United States uses competitive need limits to deny Generalized System of Preferences (GSP) treatment of imports from developing countries. The analysis here estimates in two ways the effect of competitive need limits on GSP imports. First, it uses ex post trade data to determine the effect on import values and shares. Second, it combines an ex ante model with trade and elasticity data to estimate the effect of competitive need limits. Results indicate that competitive need limits reduce affected imports by 10 to 17%. Benefits from this import reduction accrue almost exclusively to U.S. import competing firms.

Suggested Citation

  • James Devault, 1996. "Competitive Need Limits And The U.S. Generalized System Of Preference," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 58-66, October.
    • Handle: RePEc:bla:coecpo:v:14:y:1996:i:4:p:58-66
    DOI: 10.1111/j.1465-7287.1996.tb00633.x
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    References listed on IDEAS

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    Cited by:

    1. Seyoum, Belay, 2006. "US trade preferences and export performance of developing countries: Evidence from the generalized system of preferences," International Business Review, Elsevier, vol. 15(1), pages 68-83, February.
    2. Mary Amiti & John Romalis, 2007. "Will the Doha Round Lead to Preference Erosion?," IMF Staff Papers, Palgrave Macmillan, vol. 54(2), pages 338-384, June.
    3. Kara Reynolds, 2005. "The Erosion of Tariff Preferences: The Impact of U.S. Tariff Reductions on Developing Countries," International Trade 0507001, University Library of Munich, Germany.
    4. Shushanik Hakobyan, 2020. "GSP expiration and declining exports from developing countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 1132-1161, August.
    5. Shushanik Hakobyan, 2017. "Export Competitiveness of Developing Countries and US Trade Policy," The World Economy, Wiley Blackwell, vol. 40(7), pages 1405-1429, July.
    6. John Brown & Xenia Matschke & Juan Rene Rojas Rodriguez, 2025. "International cocoa trading arrangements between industrialized and developing countries 1951-1999: a structural gravity analysis," Research Papers in Economics 2025-12, University of Trier, Department of Economics.
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    8. Agama, Laurie-Ann & McDaniel, Christine A., 2002. "The NAFTA Preference and U.S.-Mexico Trade," Working Papers 15873, United States International Trade Commission, Office of Economics.
    9. Tobias Sytsma, 2021. "Rules of origin and trade preference utilization among least developed countries," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 701-718, October.
    10. Sharma, Anupa & Grant, Jason & Boys, Kathryn, 2015. "Truly Preferential Treatment? Reconsidering the Generalized System of (Trade) Preferences," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205890, Agricultural and Applied Economics Association.
    11. Hakobyan, Shushanik, 2011. "Export Competitiveness of Developing Countries and U.S. Trade Policy," Proceedings of the German Development Economics Conference, Berlin 2011 37, Verein für Socialpolitik, Research Committee Development Economics.
    12. Emilie M. Hafner-Burton & Layna Mosley & Robert Galantucci, 2019. "Protecting Workers Abroad and Industries at Home: Rights-based Conditionality in Trade Preference Programs," Journal of Conflict Resolution, Peace Science Society (International), vol. 63(5), pages 1253-1282, May.

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