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Unrestricted market access for Sub-Saharan Africa - How much is it worth and who pays?

Author

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  • Ianchovichina, Elena
  • Mattoo, Aaditya
  • Olarreaga, Marcelo

Abstract

The European Union (EU), Japan, and the United States (US) have recently announced initiatives to improve market access for the poorest countries. The authors assess the impact on Sub-Saharan Africa of these initiatives, and others that might be taken. They find that fully unrestricted access to all the Quad countries (Canada, The EU, Japan, and the US) would produce substantial gains for Sub-Saharan Africa, leading to a fourteen percent increase in non-oil exports ($ 2.5 billion), and boosting real incomes by about one percent ($ 1.8 billion). Most of these gains would come from preferential access to the highly protected Japanese, and European agricultural markets, especially the heavily protected Japanese market for meat, and certain cereal grains. The smallness of Sub-Saharan Africa's trade ensures that the costs of trade diversion for the Quad, other developing countries, and the world, would be on the whole, negligible. One concern, however, is that preferential access to protected markets might lead Sub-Saharan Africa to produce goods in which it does not have a global comparative advantage, and the future erosion of these preferences might lead to adjustment costs.

Suggested Citation

  • Ianchovichina, Elena & Mattoo, Aaditya & Olarreaga, Marcelo, 2001. "Unrestricted market access for Sub-Saharan Africa - How much is it worth and who pays?," Policy Research Working Paper Series 2595, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2595
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    References listed on IDEAS

    as
    1. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
    2. Emiko Fukase & Will Martin, 2000. "The effects of the United States granting MFN status to Vietnam," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 539-559, September.
    3. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers 2747, C.E.P.R. Discussion Papers.
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    Cited by:

    1. 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.
    2. Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
    3. Lucian Cernat & Sam Laird & Alessandro Turrini, 2003. "How Important are Market Access Issues for Developing Countries in the Doha Agenda?," International Trade 0302004, EconWPA.
    4. Dupasquier, Chantal & Osakwe, Patrick N., 2006. "Foreign direct investment in Africa: Performance, challenges, and responsibilities," Journal of Asian Economics, Elsevier, vol. 17(2), pages 241-260, April.
    5. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," World Bank Economic Review, World Bank Group, vol. 20(2), pages 197-216.
    6. Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
    7. Cernat, Lucian & Laird, Sam & Monge-Roffarello, Luca & Turrini, Alessandro, 2003. "The EU's Everything But Arms Initiative and the Least-developed Countries," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    8. Brenton, Paul & Ikezuki, Takako, 2004. "The initial and potential impact of preferential access to the U.S. market under the African Growth and Opportunity Act," Policy Research Working Paper Series 3262, The World Bank.
    9. 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.
    10. Anderson, Kym, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," WIDER Working Paper Series 025, World Institute for Development Economic Research (UNU-WIDER).
    11. Douillet, Mathilde, 2012. "Trade policies and agricultural exports of Sub-Saharan African countries: Some stylized facts and perspectives," MPRA Paper 40962, University Library of Munich, Germany.
    12. Achterbosch, Thom J. & de Bruin, S. & van Tongeren, Frank W., 2003. "Trade Preferences For Developing Countries," Report Series 29102, Agricultural Economics Research Institute.
    13. Tom Achterbosch & Hakim Ben Hammouda & Patrick Osakwe & Frank van Tongeren, 2004. "Trade liberalisation under the Doha Development Agenda Options and consequences for Africa," International Trade 0407013, EconWPA.
    14. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers 2747, C.E.P.R. Discussion Papers.
    15. Lionel Fontagné, 2003. "Market Access and Domestic Support Measures," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(3), pages 3-10, October.
    16. Author-Name: Jeffrey D. Sachs & John W. McArthur & Guido Schmidt-Traub & Margaret Kruk & Chandrika Bahadur & Michael Faye & Gordon McCord, 2004. "Ending Africa's Poverty Trap," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 117-240.
    17. Hoekman, Bernard, 2002. "Strengthening the global trade architecture for development," Policy Research Working Paper Series 2757, The World Bank.
    18. Kym Anderson, 2005. "Agricultural trade reform and poverty reduction in developing countries," Chapters,in: Trade Policy Reforms and Development, chapter 9 Edward Elgar Publishing.
    19. Seyoum, Belay, 2006. "US trade preferences and export performance of developing countries: Evidence from the generalized system of preferences," International Business Review, Elsevier, vol. 15(1), pages 68-83, February.
    20. Xavier Cirera & Francesca Foliano & Michael Gasiorek, 2016. "The impact of preferences on developing countries’ exports to the European Union: bilateral gravity modelling at the product level," Empirical Economics, Springer, vol. 50(1), pages 59-102, February.
    21. Hoekman, Bernard, 2002. "Developing Countries and the Political Economy of the Trading System," WIDER Working Paper Series 126, World Institute for Development Economic Research (UNU-WIDER).
    22. Rune Jansen Hagen & Ottar Mæstad & Arne Wiig, 2003. "Assessing the Economic Gains of Free Market Access for the Least Developed Countries in the QUAD," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 29, pages 3-24.
    23. John Whalley & J. Clark Leith, 2003. "Competitive Liberalization and a US-SACU FTA," NBER Working Papers 10168, National Bureau of Economic Research, Inc.
    24. Adagblenya, Barbara Dzidzornu, 2017. "Assessing Ghana’s trade under the African Growth and Opportunity Act (AGOA)," MPRA Paper 84255, University Library of Munich, Germany.
    25. Auboin, Marc, 2004. "The trade, debt and finance nexus: at the cross-roads of micro- and macroeconomics," WTO Discussion Papers 6, World Trade Organization (WTO), Economic Research and Statistics Division.

    More about this item

    Keywords

    Environmental Economics&Policies; Economic Theory&Research; Agribusiness&Markets; Export Competitiveness; Markets and Market Access; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research; Environmental Economics&Policies; Export Competitiveness; Markets and Market Access;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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