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Policy Responses to Trade Preference Erosion Options for Developing Countries

Policy Responses to Trade Preference Erosion Options for Developing Countries

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It was hoped that trade preferences, offered to exports from developing countries by industrialised countries, would give greater economic benefits than has been the case. Now continuing multilateral tariff liberalisation threatens to further erode even those benefits that remain. This study looks at how best developing countries should respond to this erosion of trade preferences, either through restructuring individual preference arrangements or by acting to offset the adverse effects of preference erosion.

Foreword; Abbreviations; Summary; 1. Introduction; 1.1 Context and issues; 1.2 Aims of the study; 1.3 Outline of the report; 2. Review of Trade Preference Schemes; 2.1 Nature and evolution of preferential schemes; 2.2 Extent and trade coverage of preferential schemes; 2.3 Preference margins: extent and evolution; 2.4 Summary conclusions; 3. Preferences and Developing Country Experience; 3.1 Benefits of preferential trade agreements; 3.2 Benefits of targeted trade preferences; 3.3 Costs of preference erosion; 3.4 Implications of the evidence on costs and benefits; 3.5 Summary conclusions; 4. Future Prospects and Policy Options; 4.1 Implications of current trade negotiations for preference erosion; 4.2 Characteristics of countries exposed to preference erosion; 4.3 Improving preference schemes; 4.4 Policy responses in preference-receiving countries; 4.5 Summary and implications; 5. Strategies for Addressing Preference Erosion; 5.1 Trade policy negotiating strategies; 5.2 Trade facilitation and investment strategies; 5.3 Aid for trade and export development; 5.4 Conclusions: some questions answered; Appendix to Chapter 2 (A2); Appendix to Chapter 3 (A3); Annex Tables; Bibliography; Index

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