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What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?

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  • Fabien Candau
  • Sébastien Jean

Abstract

This study shows that EU preferences to developing countries were fairly well utilised in 2001, especially in sub-Saharan Africa. For several sub-Saharan African countries, the value of EU tariff preferences, even without accounting for tariff rate quota rents, is worth a significant proportion of their world exports. For non-African Least Developed Countries, in contrast, we find that the EBA initiative was only half-utilised approximately, although it is the only preferential regime available to most of them. It is difficult to reach a firm conclusion since 2001 was the first year of enforcement of Everything But Arms (EBA), and figures for 2002 show utilisation is on the rise, but rules of origin appear to limit significantly the value of this scheme. This also likely explains why the Generalised System of Preferences (GSP) scheme is significantly under-utilised in the manufacturing sector, even when the receiving country is not eligible to any other preferential regime.
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Suggested Citation

  • Fabien Candau & Sébastien Jean, 2005. "What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?," Working Papers 2005-19, CEPII research center.
  • Handle: RePEc:cii:cepidt:2005-19
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    References listed on IDEAS

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    1. José Anson & Olivier Cadot & Antoni Estevadeordal & Jaime de Melo & Akiko Suwa-Eisenmann & Bolormaa Tumurchudur, 2005. "Rules of Origin in North-South Preferential Trading Arrangements with an Application to NAFTA," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 501-517, August.
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    3. Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
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    5. Pascal Lamy, 2002. "Stepping Stones or Stumbling Blocks? The EU's Approach Towards the Problem of Multilateralism vs Regionalism in Trade Policy," The World Economy, Wiley Blackwell, vol. 25(10), pages 1399-1413, November.
    6. Sapir, Andre, 1998. "The political economy of EC regionalism," European Economic Review, Elsevier, vol. 42(3-5), pages 717-732, May.
    7. Ju, Jiandong & Krishna, Kala, 2002. "Regulations, regime switches and non-monotonicity when non-compliance is an option: an application to content protection and preference," Economics Letters, Elsevier, vol. 77(3), pages 315-321, November.
    8. Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003. "The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?," The World Economy, Wiley Blackwell, vol. 26(6), pages 829-851, June.
    9. Jiandong Ju & Kala Krishna, 2005. "Firm behaviour and market access in a Free Trade Area with rules of origin," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 290-308, February.
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    More about this item

    Keywords

    preferential trade arrangements; EU; Africa; GSP;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • N77 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Africa; Oceania

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