The Impact of Preference Erosionon Middle-Income Developing Countries
September 1, 2004
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Summary
Preference erosion has become an obstacle to multilateral trade liberalization, as beneficiaries of trade preferences have an incentive to resist reductions in mostfavored- nation (MFN) tariffs. This study identifies middle-income developing countries that are vulnerable to export revenue loss from preference erosion. It concludes that the problem is heavily concentrated in a sub-set of preference beneficiaries-primarily small island economies dependent on sugar, banana, and-to a lesser extent-textile exports. Accordingly, measures to help mitigate the impact of preference erosion can be closely targeted at the countries at risk.
Subject: Agricultural commodities, Commodities, Economic theory, Export earnings, Exports, International trade, Supply elasticity, Tariffs, Taxes
Keywords: Agricultural commodities, Caribbean, EU market duty-free, EU price, EU regime, EU-ACP Cotonou Agreement, Export earnings, export supply elasticity, Exports, major export product, margin vis-à-vis, preference margin, preferences, Supply elasticity, Tariffs, Trade, undiversified export base, unit price, WP
Pages:
34
Volume:
2004
DOI:
Issue:
169
Series:
Working Paper No. 2004/169
Stock No:
WPIEA1692004
ISBN:
9781451858372
ISSN:
1018-5941
