Trade Preferences from a Policy Perspective

Reprint No. 2015:29

Author(s): Maria PerssonYear: 2015 Title: Handbook on Trade and Development Chapter: 6Editor(s): Oliver Morrissey, Ricardo A. López and Kishor SharmaPublisher: Edward ElgarCity: Cheltenham, UK Pages: 111–128
Online article (restrictions may apply)

Focusing on North–South trade relations, this chapter explores non-reciprocal trade preferences for developing countries, where the preference-receiving developing countries are not expected to make market access concessions to the preference-giving developed countries, from a policy perspective. The chapter offers a comprehensive overview of legal and economic aspects of non-reciprocal preferences, in particular on how the specific design of preference programmes influences whether or not preferences will have their intended effects of increasing and diversifying developing-country exports. The issues will be discussed from the perspective of how they influence developing countries’ interests rather than how the preference-granting countries are affected. The chapter provides a basis for a reform agenda including: universal product coverage in all preference programmes; consolidating the current spaghetti bowl of preferences into two preference variants per donor – one for all developing countries, and additional preferences for LDCs; increasing the security of preferential markets to promote long-term investments. Preference givers could increase the transparency and predictability of safeguards, graduation and conditionality; bind preferential tariff rates; liberalize rules of origin; and harmonize across donors and programmes.

Persson, Maria (2015), "Trade Preferences from a Policy Perspective". Chapter 6, pp. 111–128 in Oliver Morrissey, Ricardo A. López and Kishor Sharma, eds., Handbook on Trade and Development . Cheltenham, UK: Edward Elgar.

Maria Persson


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