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A Comparative Study of EU and US Trade Policies for Developing Countries: The Case of Agri-Food Products

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  • Di Rubbo, P.
  • Canali, Gabriele

Abstract

Trade relations between developed and developing countries are one of the hot topics of the ongoing World Trade Organization (WTO) negotiations. The conclusion of the Cotonou Agreement between EU and African, Caribbean and Pacific countries, the introduction of the EU’s Everything But Arms initiative for the least developed countries and the United States’ African Growth and Opportunity Act for 39 African Countries, represents tangible incentives for many developing countries to continue their efforts to open their economies and build free markets. This paper analyzes the trade creating effects of EU and US trade policies as total effect, for agri-food products of developing countries in a gravity model framework. Data refer to a 10 year period: 1996-2005. The findings show larger trade creating effects of EU trade policies, especially for upper-middle income countries. Variation in trade creation, across the years, is not statistically significant, except for the low-income countries.

Suggested Citation

  • Di Rubbo, P. & Canali, Gabriele, 2008. "A Comparative Study of EU and US Trade Policies for Developing Countries: The Case of Agri-Food Products," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43961, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:43961
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    File URL: http://purl.umn.edu/43961
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Grilli,Enzo R., 1993. "The European Community and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521385114, April.
    3. Andrew K. Rose & Eric van Wincoop, 2001. "National Money as a Barrier to International Trade: The Real Case for Currency Union," American Economic Review, American Economic Association, vol. 91(2), pages 386-390, May.
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    Cited by:

    1. repec:eee:wdevel:v:102:y:2018:i:c:p:243-261 is not listed on IDEAS
    2. Cooke, Edgar F A, 2011. "The impact of trade preferences on exports of developing countries: the case of the AGOA and CBI preferences of the USA," MPRA Paper 31439, University Library of Munich, Germany.

    More about this item

    Keywords

    Gross Trade Creation; Agricultural Trade Policy; Developed and Developing Countries; International Relations/Trade;

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