François, JosephHoekman, BernardManchin, Miriam2012-06-212012-06-212005-10https://hdl.handle.net/10986/8651Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing country support for multilateral liberalization. The authors examine the actual scope for preference erosion, including an econometric assessment of the actual utilization and the scope for erosion estimated by modeling full elimination of OECD tariffs, and hence full most-favored-nation liberalization-based preference erosion. Preferences are underutilized due to administrative burden-estimated to be at least 4 percent on average-reducing the magnitude of erosion costs significantly. For those products where preferences are used (are of value), the primary negative impact follows from erosion of EU preferences. This suggests the erosion problem is primarily bilateral rather than a WTO-based concern.CC BY 3.0 IGOAD VALOREMADMINISTRATIVE BURDENAGRICULTURAL PRODUCTSAGRICULTUREAPPARELAVERAGE TARIFFSBENCHMARKBENCHMARK DATABENEFICIARY COUNTRIESBENEFICIARY COUNTRYBENEFITS OF TRADEBILATERAL TRADEBILATERAL TRADE FLOWSCARTELCOMPLIANCE COSTSCONCESSIONSCONTRACTING PARTIESCOOPERATION AGREEMENTSCOUNTRY EXPORTERSCOUNTRY TARIFFCUSTOMSCUSTOMS DUTIESDECOLONIZATIONDEVELOPMENT ASSISTANCEDISCRIMINATORY TARIFFDISCRIMINATORY TARIFF REDUCTIONDOMESTIC FIRMSDOMESTIC POLICIESDUTY REDUCTIONDUTY-FREE ACCESSDUTY-FREE ENTRYDUTY-FREE TRADEECONOMIC COOPERATIONECONOMIC ENVIRONMENTECONOMIC RELATIONSEEC MEMBER STATESELASTICITYELIMINATION OF TARIFFSEXPORT DIVERSIFICATIONEXPORT PERFORMANCEEXPORT PRICEEXPORT REVENUEEXPORTERSEXPORTING COUNTRIESEXPORTING COUNTRYEXPORTSFACTOR MARKETSFOREIGN PRODUCTSFOREIGN SUPPLIERSFREE ACCESSFREE ENTRYFREE MARKETFREE MARKET ACCESSFREE TRADEFREE TRADE AGREEMENTSFREE TRADE AREAGDPGDP PER CAPITAGENERAL AGREEMENT ON TARIFFSGENERAL EQUILIBRIUM MODELGENERALIZED SYSTEM OF PREFERENCESGLOBAL TRADEGRAVITY MODELSHUMAN RIGHTSIMPORT DATAIMPORT DEMANDIMPORT PROTECTIONIMPORT TARIFFSIMPORTSINCOMEINCOME COUNTRIESINCOME LEVELSINDUSTRIAL PRODUCTSINDUSTRIALIZATIONINTELLECTUAL PROPERTYINTELLECTUAL PROPERTY RIGHTSINTERNATIONAL TRADEINVESTMENT POLICIESLDCSLEGAL FRAMEWORKLIBERAL RULESLIBERALIZATION OF TRADELOCAL SUPPLIERSLOW-INCOME COUNTRIESMANUFACTURED GOODSMARKET ACCESSMARKET POWERMARKET SHAREMFN TARIFFSMONEY LAUNDERINGMOST-FAVORED-NATIONMULTILATERAL LIBERALIZATIONMULTILATERAL TRADEMULTILATERAL TRADE LIBERALIZATIONMULTILATERAL TRADE NEGOTIATIONSNATIONAL INCOMENEGATIVE TERMS OF TRADE EFFECTSNON-RECIPROCAL BASISNON-TRADE AREASNONDISCRIMINATORY TARIFF REDUCTIONSORIGIN RULESPARTNER COUNTRIESPARTNER COUNTRYPER CAPITA INCOMESPREFERENCE EROSIONPREFERENCE SCHEMESPREFERENTIAL ACCESSPREFERENTIAL MARGINPREFERENTIAL SUPPLIERSPREFERENTIAL TARIFFPREFERENTIAL TARIFFSPREFERENTIAL TRADEPREFERENTIAL TRADE ARRANGEMENTSPREFERENTIAL TREATMENTPRICE CHANGESPRODUCT CATEGORIESPRODUCT LEVELPRODUCTION PROCESSPROPERTY RIGHTSPROTECTION DATAPROTECTIONISMRATE OF TARIFF PREFERENCERATES OF PROTECTIONRECIPROCAL BASISRECIPROCAL TRADE PREFERENCESRECIPROCITYREGRESSION ANALYSISRESTRICTIVE RULESRESTRICTIVE RULES OF ORIGINREVENUE LOSSSAFEGUARD CLAUSESPECIALIZATIONSUB-SAHARAN AFRICATARIFF LINETARIFF LINESTARIFF PREFERENCESTARIFF QUOTASTARIFF RATESTARIFF REDUCTIONTARIFF REDUCTIONSTARIFF REVENUETECHNICAL REQUIREMENTSTECHNOLOGICAL PROGRESSTERMS OF TRADETHIRD-COUNTRY SUPPLIERSTRADE ACTTRADE COOPERATIONTRADE COSTSTRADE CREATIONTRADE DEFLECTIONTRADE DIVERSIONTRADE FLOWSTRADE GAINSTRADE LINKSTRADE NEGOTIATIONSTRADE PARTNERTRADE PARTNERSTRADE PARTNERSHIPTRADE POLICIESTRADE POLICYTRADE PREFERENCETRADE PREFERENCESTRADE PROMOTIONTRADE PROTECTIONTRADE PROTOCOLSTRADE RELATIONSTRADE RELATIONSHIPTRADE-DISTORTING POLICIESTRADING COSTSTRADING PARTNERTRADING PARTNERSTRANSACTION COSTSWORLD ECONOMYWORLD TRADEWORLD TRADE ORGANIZATIONWTOZERO TARIFFSWorld Bank10.1596/1813-9450-3730