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A comparative analysis of EU and US trade preferences for the LDCs and AGOA beneficiaries

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In light of the much praised US African Growth and Opportunity Act (AGOA), this study compares EU and US preferential trade policies towards the least developed countries (LDCs) under the EU Everything but Arms (EBA) initiative and the countries covered by the US AGOA. The descriptive analysis examines and compares product coverage, diversification of imports, share and value of preferential imports and preference utilisation rates. The empirical analysis, conducted in a gravity setting, compares the relative trade creating effects of the EU and US schemes. Excluding mineral fuels, it finds that EU preferential trade policies generate about twice as much trade as do corresponding US policies.

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  • Davies, E. & Nilsson, L., 2013. "A comparative analysis of EU and US trade preferences for the LDCs and AGOA beneficiaries," DG TRADE Chief Economist Notes 2013-1, Directorate General for Trade, European Commission.
    • Handle: RePEc:ris:dgtcen:2013_001
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    File URL: http://trade.ec.europa.eu/doclib/docs/2013/february/tradoc_150479.%201_February%202013.pdf
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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. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," The World Bank Economic Review, World Bank, vol. 20(2), pages 197-216.
    3. Theo S. Eicher & Christian Henn, 2011. "One Money, One Market: A Revised Benchmark," Review of International Economics, Wiley Blackwell, vol. 19(3), pages 419-435, August.
    4. Luca De Benedictis & Luca Salvatici (ed.), 2011. "The Trade Impact of European Union Preferential Policies," Springer Books, Springer, number 978-3-642-16564-1, September.
    5. Jon D. Haveman & Howard J. Shatz, 2003. "Developed Country Trade Barriers and the Least Developed Countries: The Economic Results of Freeing Trade," WIDER Working Paper Series DP2003-46, World Institute for Development Economic Research (UNU-WIDER).
    6. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    Cited by:

    1. Katerina Gradeva & Inmaculada Martínez-Zarzoso, 2016. "Are Trade Preferences more Effective than Aid in Supporting Exports? Evidence from the ‘Everything But Arms’ Preference Scheme," The World Economy, Wiley Blackwell, vol. 39(8), pages 1146-1171, August.
    2. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," JRFM, MDPI, vol. 13(9), pages 1-20, September.
    3. Temprano Arroyo, Heliodoro, 2018. "Promoting labour market integration of refugees with trade preferences: Beyond the EU-Jordan compact," Kiel Working Papers 2108, Kiel Institute for the World Economy (IfW Kiel).
    4. Maria Cipollina & Luca Salvatici, 2022. "The Dark Matter of Bilateral Preferential Margins: An Assessment of the Effect of US Tariffs," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    5. World Bank Group, 2014. "Third Ethiopia Economic Update : Strengthening Export Performance through Improved Competitiveness," World Bank Publications - Reports 20026, The World Bank Group.
    6. Mullings, Robert & Mahabir, Aruneema, 2018. "Growth by Destination: The Role of Trade in Africa’s Recent Growth Episode," World Development, Elsevier, vol. 102(C), pages 243-261.

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    More about this item

    Keywords

    EU trade; US trade; preference utilisation; LDCs;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F35 - International Economics - - International Finance - - - Foreign Aid

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