The Impact of Preference Erosionon Middle-Income Developing Countries

Author/Editor:

Hans P Lankes ; Katerina Alexandraki

Publication Date:

September 1, 2004

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 2004/169

Subject:

Agricultural commodities Commodities Economic theory Export earnings Exports International trade Supply elasticity Tariffs Taxes

English

Publication Date:

September 1, 2004

ISBN/ISSN:

9781451858372/1018-5941

Stock No:

WPIEA1692004

Pages:

34

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