Preference Utilization and Tariff Reduction in European Union Imports from African, Caribbean, and Pacific Countries

Abstract

Despite the long relationship between the European Union and the African, Caribbean, and Pacific (ACP) countries aimed at encouraging their exports while stimulating growth and investment, the ACP states still face difficulties in integrating into the world economy. The author examines the non-least developed ACP countries' preferential trade with the EU. Her objective is to explain the determinants of preferential exports of ACP countries toward the EU and to assess the impact of preferences on trade volumes. The author also investigates the existence of a threshold in the offered duty reduction under which traders have no incentives to ask for preferences.