Preference Erosion and Multilateral Trade Liberalization

Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing country support for multilateral liberalization. The authors examine the actual scope for preference erosion, including an econometric assessment of the actual utilization and the scope for erosion estimated by modeling full elimination of OECD tariffs, and hence full most-favored-nation liberalization-based preference erosion. Preferences are underutilized due to administrative burden-estimated to be at least 4 percent on average-reducing the magnitude of erosion costs significantly. For those products where preferences are used (are of value), the primary negative impact follows from erosion of EU preferences. This suggests the erosion problem is primarily bilateral rather than a WTO-based concern.

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Bibliographic Details
Main Authors: François, Joseph, Hoekman, Bernard, Manchin, Miriam
Format: Policy Research Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2005-10
Subjects:AD VALOREM, ADMINISTRATIVE BURDEN, AGRICULTURAL PRODUCTS, AGRICULTURE, APPAREL, AVERAGE TARIFFS, BENCHMARK, BENCHMARK DATA, BENEFICIARY COUNTRIES, BENEFICIARY COUNTRY, BENEFITS OF TRADE, BILATERAL TRADE, BILATERAL TRADE FLOWS, CARTEL, COMPLIANCE COSTS, CONCESSIONS, CONTRACTING PARTIES, COOPERATION AGREEMENTS, COUNTRY EXPORTERS, COUNTRY TARIFF, CUSTOMS, CUSTOMS DUTIES, DECOLONIZATION, DEVELOPMENT ASSISTANCE, DISCRIMINATORY TARIFF, DISCRIMINATORY TARIFF REDUCTION, DOMESTIC FIRMS, DOMESTIC POLICIES, DUTY REDUCTION, DUTY-FREE ACCESS, DUTY-FREE ENTRY, DUTY-FREE TRADE, ECONOMIC COOPERATION, ECONOMIC ENVIRONMENT, ECONOMIC RELATIONS, EEC MEMBER STATES, ELASTICITY, ELIMINATION OF TARIFFS, EXPORT DIVERSIFICATION, EXPORT PERFORMANCE, EXPORT PRICE, EXPORT REVENUE, EXPORTERS, EXPORTING COUNTRIES, EXPORTING COUNTRY, EXPORTS, FACTOR MARKETS, FOREIGN PRODUCTS, FOREIGN SUPPLIERS, FREE ACCESS, FREE ENTRY, FREE MARKET, FREE MARKET ACCESS, FREE TRADE, FREE TRADE AGREEMENTS, FREE TRADE AREA, GDP, GDP PER CAPITA, GENERAL AGREEMENT ON TARIFFS, GENERAL EQUILIBRIUM MODEL, GENERALIZED SYSTEM OF PREFERENCES, GLOBAL TRADE, GRAVITY MODELS, HUMAN RIGHTS, IMPORT DATA, IMPORT DEMAND, IMPORT PROTECTION, IMPORT TARIFFS, IMPORTS, INCOME, INCOME COUNTRIES, INCOME LEVELS, INDUSTRIAL PRODUCTS, INDUSTRIALIZATION, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTERNATIONAL TRADE, INVESTMENT POLICIES, LDCS, LEGAL FRAMEWORK, LIBERAL RULES, LIBERALIZATION OF TRADE, LOCAL SUPPLIERS, LOW-INCOME COUNTRIES, MANUFACTURED GOODS, MARKET ACCESS, MARKET POWER, MARKET SHARE, MFN TARIFFS, MONEY LAUNDERING, MOST-FAVORED-NATION, MULTILATERAL LIBERALIZATION, MULTILATERAL TRADE, MULTILATERAL TRADE LIBERALIZATION, MULTILATERAL TRADE NEGOTIATIONS, NATIONAL INCOME, NEGATIVE TERMS OF TRADE EFFECTS, NON-RECIPROCAL BASIS, NON-TRADE AREAS, NONDISCRIMINATORY TARIFF REDUCTIONS, ORIGIN RULES, PARTNER COUNTRIES, PARTNER COUNTRY, PER CAPITA INCOMES, PREFERENCE EROSION, PREFERENCE SCHEMES, PREFERENTIAL ACCESS, PREFERENTIAL MARGIN, PREFERENTIAL SUPPLIERS, PREFERENTIAL TARIFF, PREFERENTIAL TARIFFS, PREFERENTIAL TRADE, PREFERENTIAL TRADE ARRANGEMENTS, PREFERENTIAL TREATMENT, PRICE CHANGES, PRODUCT CATEGORIES, PRODUCT LEVEL, PRODUCTION PROCESS, PROPERTY RIGHTS, PROTECTION DATA, PROTECTIONISM, RATE OF TARIFF PREFERENCE, RATES OF PROTECTION, RECIPROCAL BASIS, RECIPROCAL TRADE PREFERENCES, RECIPROCITY, REGRESSION ANALYSIS, RESTRICTIVE RULES, RESTRICTIVE RULES OF ORIGIN, REVENUE LOSS, SAFEGUARD CLAUSE, SPECIALIZATION, SUB-SAHARAN AFRICA, TARIFF LINE, TARIFF LINES, TARIFF PREFERENCES, TARIFF QUOTAS, TARIFF RATES, TARIFF REDUCTION, TARIFF REDUCTIONS, TARIFF REVENUE, TECHNICAL REQUIREMENTS, TECHNOLOGICAL PROGRESS, TERMS OF TRADE, THIRD-COUNTRY SUPPLIERS, TRADE ACT, TRADE COOPERATION, TRADE COSTS, TRADE CREATION, TRADE DEFLECTION, TRADE DIVERSION, TRADE FLOWS, TRADE GAINS, TRADE LINKS, TRADE NEGOTIATIONS, TRADE PARTNER, TRADE PARTNERS, TRADE PARTNERSHIP, TRADE POLICIES, TRADE POLICY, TRADE PREFERENCE, TRADE PREFERENCES, TRADE PROMOTION, TRADE PROTECTION, TRADE PROTOCOLS, TRADE RELATIONS, TRADE RELATIONSHIP, TRADE-DISTORTING POLICIES, TRADING COSTS, TRADING PARTNER, TRADING PARTNERS, TRANSACTION COSTS, WORLD ECONOMY, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO, ZERO TARIFFS,
Online Access:http://documents.worldbank.org/curated/en/2005/10/6312458/preference-erosion-multilateral-trade-liberalization
http://hdl.handle.net/10986/8651
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