Publication:
Economic Policy Responses to Preference Erosion : From Trade as Aid to Aid for Trade

dc.contributor.authorHoekman, Bernard
dc.date.accessioned2012-06-18T15:36:04Z
dc.date.available2012-06-18T15:36:04Z
dc.date.issued2005-09
dc.description.abstractTrade preferences are a central issue in ongoing efforts to negotiate further multilateral trade liberalization. "Less preferred" countries are increasingly concerned about the discrimination they confront, while "more preferred" developing countries worry that WTO-based liberalization of trade will erode the value of current preferential access regimes. This tension suggests there is a political economy case for preference-granting countries to explicitly address erosion fears. The authors argue that the appropriate instrument for this is development assistance. The alternative of addressing erosion concerns through the trading system will generate additional discrimination and trade distortions, rather than moving the WTO toward a more liberal, non-discriminatory regime. They further argue that prospective losses generated by most-favored-nation liberalization should be quantified on a bilateral basis, using methods that estimate what the associated transfer should have been and ignoring the various factors that reduce their value in practice (such as compliance costs or the fact that part of the rents created by preference programs accrue to importers in OECD countries). Given that many poor countries have not been able to benefit much from preference programs, a case is also made that preference erosion should be considered as part of a broader response by OECD countries to calls to make the trading system more supportive of economic development. The focus should be on identifying actions and policy measures that will improve the ability of developing countries to use trade for development.en
dc.identifierhttp://documents.worldbank.org/curated/en/2005/09/6294480/economic-policy-responses-preference-erosion-trade-aid-aid-trade
dc.identifier.urihttps://hdl.handle.net/10986/8265
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3721
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURE
dc.subjectAPPAREL
dc.subjectBALANCE OF PAYMENTS
dc.subjectBENEFITS OF TRADE
dc.subjectBUSINESS CYCLE
dc.subjectCAPACITY BUILDING
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVENESS
dc.subjectCOMPETITIVENESS OF FIRMS
dc.subjectCOUNTRY EXPORTERS
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDEVELOPMENT STRATEGY
dc.subjectDISCRIMINATORY TARIFF
dc.subjectDISCRIMINATORY TARIFF REDUCTION
dc.subjectDISCRIMINATORY TRADE POLICIES
dc.subjectDOMESTIC INDUSTRIES
dc.subjectDOMESTIC PRODUCERS
dc.subjectDYNAMIC GAINS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC POLICY
dc.subjectELIMINATION OF TARIFFS
dc.subjectEXPORT CAPACITY
dc.subjectEXPORT DIVERSIFICATION
dc.subjectEXPORT PRICE
dc.subjectEXPORT PRODUCTION
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL SHOCKS
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFINANCIAL TRANSFERS
dc.subjectFOREIGN PRODUCTS
dc.subjectFOREIGN SUPPLIERS
dc.subjectFREE ACCESS
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENTS
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGENERALIZED SYSTEM OF PREFERENCES
dc.subjectGLOBAL LIBERALIZATION
dc.subjectGLOBAL TRADE
dc.subjectGLOBAL TRADE ANALYSIS
dc.subjectHARMONIZATION
dc.subjectIMPORT PRICES
dc.subjectIMPORT SUBSIDY
dc.subjectIMPORTING COUNTRIES
dc.subjectIMPORTING COUNTRY
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINCOME DEVELOPING COUNTRIES
dc.subjectINCOME GROUPS
dc.subjectINCOME SUPPORT PROGRAMS
dc.subjectINCOME TRANSFERS
dc.subjectINTERNATIONAL POLICY
dc.subjectINTERNATIONAL TRADE
dc.subjectLDCS
dc.subjectLIBERALIZATION OF TRADE
dc.subjectLOCAL SUPPLIERS
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMARKET ACCESS
dc.subjectMARKET FAILURES
dc.subjectMARKET POWER
dc.subjectMFN TARIFFS
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectMOST-FAVORED-NATION
dc.subjectMULTILATERAL AGENCIES
dc.subjectMULTILATERAL APPROACH
dc.subjectMULTILATERAL LIBERALIZATION
dc.subjectMULTILATERAL ORGANIZATIONS
dc.subjectMULTILATERAL REFORMS
dc.subjectMULTILATERAL TRADE
dc.subjectMULTILATERAL TRADE LIBERALIZATION
dc.subjectNEGATIVE TERMS OF TRADE EFFECTS
dc.subjectNEGOTIATING AGENDA
dc.subjectNONDISCRIMINATORY REGIME
dc.subjectNONDISCRIMINATORY TARIFF REDUCTIONS
dc.subjectOPPORTUNITY COST
dc.subjectPOLITICAL ECONOMY
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPREFERENCE EROSION
dc.subjectPREFERENCE SCHEMES
dc.subjectPREFERENTIAL ACCESS
dc.subjectPREFERENTIAL ACCESS TO MARKETS
dc.subjectPREFERENTIAL SUPPLIERS
dc.subjectPREFERENTIAL TARIFF
dc.subjectPREFERENTIAL TRADE
dc.subjectPRICE CHANGES
dc.subjectPRICE SUPPORT
dc.subjectPRICE SUPPORTS
dc.subjectPRIMARY FACTORS
dc.subjectPRIVATE SECTOR
dc.subjectPUBLIC GOOD
dc.subjectPUBLIC SECTOR
dc.subjectQUANTITATIVE RESTRICTIONS
dc.subjectQUOTA RENTS
dc.subjectRATES OF PROTECTION
dc.subjectREAL INCOME
dc.subjectRECIPROCAL ACCESS
dc.subjectRECIPROCAL BASIS
dc.subjectRECIPROCAL TRADE PREFERENCES
dc.subjectRECIPROCITY
dc.subjectREGIONAL TRADE
dc.subjectREGIONAL TRADE AGREEMENTS
dc.subjectREGIONAL TRADE LIBERALIZATION
dc.subjectREMOVAL OF TRADE-DISTORTING POLICIES
dc.subjectRESTRICTIVE RULES OF ORIGIN
dc.subjectSAFETY NETS
dc.subjectSPECIALIZATION
dc.subjectSUB-SAHARAN AFRICA
dc.subjectTARIFF LINE
dc.subjectTARIFF LINES
dc.subjectTARIFF REDUCTIONS
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTERMS OF TRADE
dc.subjectTHIRD-COUNTRY SUPPLIERS
dc.subjectTRADE ACTION
dc.subjectTRADE ADJUSTMENT
dc.subjectTRADE AGENDA
dc.subjectTRADE AREAS
dc.subjectTRADE ASSISTANCE
dc.subjectTRADE BARRIERS
dc.subjectTRADE CAPACITY
dc.subjectTRADE CREATION
dc.subjectTRADE DEVELOPMENT
dc.subjectTRADE DISTORTIONS
dc.subjectTRADE DIVERSION
dc.subjectTRADE EFFECT
dc.subjectTRADE GAINS
dc.subjectTRADE INTEGRATION
dc.subjectTRADE NEGOTIATIONS
dc.subjectTRADE POLICIES
dc.subjectTRADE PREFERENCES
dc.subjectTRADE REFORM
dc.subjectTRADE REFORMS
dc.subjectTRADE REGIME
dc.subjectTRADING PARTNERS
dc.subjectTRANSACTIONS COSTS
dc.subjectTRANSITION PERIOD
dc.subjectTRANSITION PERIODS
dc.subjectURUGUAY ROUND
dc.subjectWELFARE GAINS
dc.subjectWORLD PRICES
dc.subjectWORLD TRADING SYSTEM
dc.subjectWTO
dc.subjectZERO TARIFF
dc.titleEconomic Policy Responses to Preference Erosion : From Trade as Aid to Aid for Tradeen
dspace.entity.typePublication
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2005/09/6294480/economic-policy-responses-preference-erosion-trade-aid-aid-trade
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTrade and Competitiveness
okr.identifier.doi10.1596/1813-9450-3721
okr.identifier.externaldocumentum000016406_20050919093149
okr.identifier.internaldocumentum6294480
okr.identifier.reportWPS3721
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/09/19/000016406_20050919093149/Rendered/PDF/wps3721.pdfen
okr.topicRural Development::Rural Land Policies for Poverty Reduction
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicInternational Economics and Trade::Free Trade
okr.topicInternational Economics and Trade::Trade Policy
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication49a06ad1-63d4-5c3a-8b66-c6c3009e9cdf
relation.isAuthorOfPublication.latestForDiscovery49a06ad1-63d4-5c3a-8b66-c6c3009e9cdf
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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