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Preferential Market Access Design: Evidence and Lessons from African Apparel Exports to the US and to the EU

  • Jaime de MELO

    ()

    (Ferdi)

  • Alberto PORTUGAL-PEREZ

    (FERDI)

Least developing countries (LDC) rely on preferential market access which is mechanically eroded by the tariff reductions by grantor countries to other countries. Effective market access depends on the severity of the Rules of Origin that have to be met to qualify for these preferences. These Rules of Origin have turned out to be complicated and burdensome for LDC exporters. Since 2001, under the US Africa Growth Opportunity Act (AGOA), 22 African countries exporting apparel to the US can use fabric from any origin and still meet the criterion for preferential access (single transformation), while the European Union continued to require yarn to be woven into fabric and then made-up into apparel in the same country (double transformation).

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File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/P47_DeMelo_PortugalPerez_Web.pdf
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Paper provided by FERDI in its series Working Papers with number P47.

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Date of creation: Apr 2012
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Handle: RePEc:fdi:wpaper:423
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Web page: http://ferdi.fr/

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  1. Joao Santos Silva & Silvana Tenreyro, 2005. "The Log of Gravity," CEP Discussion Papers dp0701, Centre for Economic Performance, LSE.
  2. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-65, May.
  3. Svetlana Demidova & Kala Krishna & Hiau Looi Kee & Ivan Cherkashin, 2009. "Firm Heterogeneity and Costly Trade: A New Estimation Strategy and Policy Experiments," 2009 Meeting Papers 1199, Society for Economic Dynamics.
  4. Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference erosion and multilateral trade liberalization," Policy Research Working Paper Series 3730, The World Bank.
  5. Miriam Manchin, 2006. "Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries," The World Economy, Wiley Blackwell, vol. 29(9), pages 1243-1266, 09.
  6. de Melo, Jaime & Portugal-Pérez, Alberto, 2008. "Rules of Origin, Preferences and Diversification in Apparel: African Exports to the US and to the EU," CEPR Discussion Papers 7072, C.E.P.R. Discussion Papers.
  7. Olivier Cadot & Céline Carrère & Jaime de Melo & Alberto Portugal-Pérez, 2005. "Market Access and Welfare under Free Trade Agreements: Textiles under," World Bank Economic Review, World Bank Group, vol. 19(3), pages 379-405.
  8. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, vol. 54(1), pages 169-187, October.
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