Africa in the Doha Round: Dealing with Preference Erosion and Beyond
IMF Policy Discussion Papers, November 1, 2005
Source details
- Canonical URL
- Africa in the Doha Round: Dealing with Preference Erosion and Beyond
Other formats
Bibliographic details
- Authors: Yongzheng Yang
- Published: November 1, 2005
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451975796.003
Summary and thesis
- Improving market access in industrial countries and retaining preferences have been Africa's two key objectives in the Doha Round trade negotiations.
- The paper argues that African negotiators may have overlooked 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.
- 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 offer to liberalize their own trade regimes and focus on reciprocal liberalization as a negotiation strategy rather than on preferential and differential treatment.
Key findings
- Historical African negotiating focus: primary emphasis on market access in industrial countries and on retaining preferential treatment.
- Missed opportunities: potential market access gains in developing-country markets where trade barriers remain relatively high and demand for African imports has expanded substantially.
- Preference erosion: anticipated reductions in most-favored-nation tariffs in industrial countries will lead to erosion of preferential margins enjoyed by African exporters.
- Offset requirement: to compensate for preference erosion, Doha outcomes must secure liberalization across all sectors and by all WTO members, generating gains that outweigh losses for African countries.
- Negotiation strategy implication: reciprocal liberalization by African countries could increase the likelihood of comprehensive liberalization outcomes.
Policy recommendations
- Ensure Doha Round commitments produce liberalization in all sectors by all WTO members so that gains offset losses from preference erosion.
- Consider offering liberalization of domestic trade regimes to strengthen leverage and credibility in negotiations.
- Emphasize reciprocal liberalization as a central negotiation strategy rather than relying primarily on preferential and differential treatment.