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Africa in the Doha Round: Dealing with Preference Erosion and Beyond

  • Yongzheng Yang
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    Improving market access in industrial countries and retaining preferences have been Africa's two key objectives in the Doha Round trade negotiations. This paper argues that African negotiators may have overlooked the potential market access gains in developing countries, where trade barriers remain relatively high and demand for African imports has expanded substantially over the past decades. As reductions in most-favored-nation tariffs in industrial countries will inevitably lead to preference erosion, African countries need to ensure that the Doha Round leads to liberalization in all sectors by all World Trade Organization (WTO) members, so that the resulting gains will offset any losses. Such an outcome is more likely if African countries also offer to liberalize their own trade regimes and focus on reciprocal liberalization as a negotiation strategy rather on preferential and differential treatment.

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    Paper provided by International Monetary Fund in its series IMF Policy Discussion Papers with number 05/8.

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    Length: 27
    Date of creation: 01 Nov 2005
    Date of revision:
    Handle: RePEc:imf:imfpdp:05/8
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    1. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 626-670, December.
    2. Hans P. Lankes & Katerina Alexandraki, 2004. "The Impact of Preference Erosionon Middle-Income Developing Countries," IMF Working Papers 04/169, International Monetary Fund.
    3. Przemyslaw Kowalski, 2005. "Impact of Changes in Tariffs on Developing Countries' Government Revenue," OECD Trade Policy Papers 18, OECD Publishing.
    4. Wusheng Yu & Trine Vig Jensen, 2005. "Tariff Preferences, WTO Negotiations and the LDCs: The Case of the 'Everything But Arms' Initiative," The World Economy, Wiley Blackwell, vol. 28(3), pages 375-405, 03.
    5. Marcelo Olarreaga & Çaglar Özden, 2005. "AGOA and Apparel: Who Captures the Tariff Rent in the Presence of Preferential Market Access?," The World Economy, Wiley Blackwell, vol. 28(1), pages 63-77, 01.
    6. Yongzheng Yang & Sanjeev Gupta, 2005. "Regional Trade Arrangements in Africa; Past Performance and the Way Forward," IMF Working Papers 05/36, International Monetary Fund.
    7. William R. Cline, 2004. "Trade Policy and Global Poverty," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 379.
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