Is Erosion of Preferences a Serious Concern
AGRICULTURAL TRADE REFORM AND THE DOHA DEVELOPMENT AGENDA, Anderson and W. Martin, eds., Washington, D.C., pp. 161-192, Oxford University Press and The World Bank
CEPII Working Paper No. 2005-14
46 Pages Posted: 21 Aug 2008
Date Written: September 1, 2005
Abstract
This paper aims to clarify the specific issues raised by trade preferences, in particular non-reciprocal ones, as they pertain to the Doha round. We evaluate the extent of tariff preferences through both a measure of the "true" preferential margin and an assessment of tariff-rate quota rents. We find that the threat of preference erosion following the Doha round is real, insofar as trade preferences are now playing a key role in the world trading system, and in particular in the pro-poor policies undertaken by rich countries. Although the problem is focused on a handful of products and on a limited number of countries, our analysis suggests that the magnitude of forthcoming difficulties for poor countries could be significant in many cases.
Keywords: Preferential trade arrangements (PTAs), erosion, Doha Development Agenda
JEL Classification: F12, F13, D58, Q17, O19
Suggested Citation: Suggested Citation
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