Preferential Trade Agreements: How Much Do They Benefit Developing Economies?

This report aims to answer two major questions: (1) How beneficial are the trade preferences provided to developing countries; and (2) what are the implications of possible erosion of these benefits under multilateral trade liberalisation? The report focuses on trade preferences provided by the so-called Quad countries (Canada, the European Union, Japan and the United States) because they have some of the worlds highest tariffs on agricultural commodities. Findings from this study suggest that although preferential margins will be eroded with multilateral liberalisation, this may be a problem only for certain countries and within specific sectors, and that factors not related to preferential trade schemes may be limiting the exports of the least-developed countries (LDC). Table of Content : List of Abbreviations Executive Summary Part I. Preferential Margins in the Agricultural Sector of Quad Countries for Selected Non-Reciprocal Agreements -Introduction -United States -Japan -Canada -European Union -Summary and Conclusions -Annex I.1. Data and Methodology -Annex I.2. Average Tariff Rates by Product Aggregate (HS2) United States -Annex I.3. Eligible Countries to Various Non-Reciprocal Arrangements -References Part II. The Value of Agricultural Preferential Access -Introduction -Agricultural Imports of the Quad Countries -The Value of Preferencial Access for the Quad Countries -Conclusions -Annex II.1. Methodology and Data for Preferential Rents -Annex II.2. Background Information on the Value of Imported Goods by Quad Countries -References