IDEAS home Printed from
   My bibliography  Save this paper

Agricultural Trade Preferences and the Developing Countries


  • Wainio, John
  • Shapouri, Shahla
  • Trueblood, Michael A.
  • Gibson, Paul R.


Nonreciprocal trade preference programs originated in the 1970s under the Generalized System of Preferences (GSP) as an effort by high-income developed countries to provide tariff concessions for low-income countries. The goal of the programs was to increase export earnings, promote industrialization, and stimulate economic growth in the lower income countries. This study analyzes detailed trade and tariff data for the United States and the European Union (the two largest nonreciprocal preference donors) to determine the extent to which the programs have increased exports from beneficiary countries. For those products where the margins of preference are large and where beneficiaries have a comparative advantage and the capacity to expand production, these programs can create adequate incentives leading to a growing export market. The analysis finds that the programs offer significant benefits for some countries, mostly the higher income developing countries. Economic benefits in the least developed countries have been modest. An unanswered question is whether these gains will continue after the incentives are reduced.

Suggested Citation

  • Wainio, John & Shapouri, Shahla & Trueblood, Michael A. & Gibson, Paul R., 2005. "Agricultural Trade Preferences and the Developing Countries," Economic Research Report 7258, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:7258

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2002. "Eliminating Excessive Tariffs on Exports of Least Developed Countries," World Bank Economic Review, World Bank Group, vol. 16(1), pages 1-21, June.
    2. 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.
    3. Don P. CLARK, 1997. "A Diffusion Model Of The Process Of Implementing The Caribbean Basin Economic Recovery Act," The Developing Economies, Institute of Developing Economies, vol. 35(2), pages 185-195, June.
    4. Loper, Nathan & Abbott, Philip C. & Foster, Kenneth A., 2003. "Preferential Trade Of Agricultural Commodities In The Caribbean Basin," 2003 Annual meeting, July 27-30, Montreal, Canada 22018, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Jevtić, Stojan & Stanković, Vojislav & Vučković, Slobodan, 2007. "Export Growth of Agricultural Products as Factor of Agricultural and Rural Development in Serbia," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162400, European Association of Agricultural Economists.
    2. Laaksonen, Kalle & Maki-Franti, Petri & Virolainen, Meri, 2007. "Lome Convention, Agriculture and Trade Relations between the EU and the ACP Countries in 1975-2000," Working Papers 18853, TRADEAG - Agricultural Trade Agreements.
    3. Aiello, Francesco & Demaria, Federica, 2009. "Do trade preferential agreements enhance the exports of developing countries? Evidence from the EU GSP," MPRA Paper 20093, University Library of Munich, Germany.
    4. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2006. "The Consequences of Agricultural Trade Liberalization for Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25471, International Association of Agricultural Economists.
    5. Kelly Ruth, 2010. "EU and U.S. Non-Reciprocal Preferences: Maintaining the Acquis," The Law and Development Review, De Gruyter, vol. 3(1), pages 1-39, April.
    6. Federica DeMaria & Sophie Drogué & Alan Matthews, 2008. "Agro-Food Preferences in the EU's GSP Scheme: An Analysis of Changes Between 2004 and 2006," Development Policy Review, Overseas Development Institute, vol. 26(6), pages 693-712, November.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersrr:7258. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.