Preference Erosion and Multilateral Trade Liberalization

Because of concern that tariff reductions in Organization for Economic Co-operation and Development (OECD) countries will translate into worsening export performance for the least developed countries, the erosion of trade preferences may become a s...

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Main Authors:	Francois, Joseph, Hoekman, Bernard, Manchin, Miriam
Format:	Journal Article
Language:	English en_US
Published:	Oxford University Press on behalf of the World Bank 2013
Subjects:	trade liberalization trade preferences preference erosion tariff reductions OECD GATT WTO
Online Access:	http://documents.worldbank.org/curated/en/2006/05/17753358/preference-erosion-multilateral-trade-liberalization http://hdl.handle.net/10986/16423

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recordtype	oai_dc
spelling	okr-10986-164232021-04-23T14:03:29Z Preference Erosion and Multilateral Trade Liberalization Francois, Joseph Hoekman, Bernard Manchin, Miriam trade liberalization trade preferences preference erosion tariff reductions OECD GATT WTO Because of concern that tariff reductions in Organization for Economic Co-operation and Development (OECD) countries will translate into worsening export performance for the least developed countries, the erosion of trade preferences may become a stumbling block for multilateral trade liberalization. An econometric analysis of actual preference use shows that preferences are underused because of administrative burdens-estimated to be equivalent to an average of four percent of the value of goods traded. To quantify the maximum scope for preference erosion, the compliance cost estimates are used in a model-based assessment of the impact of full elimination of OECD tariffs. Taking into account administrative costs eliminates erosion costs in the aggregate and greatly reduces the losses for countries most affected by preference erosion. 2013-12-20T15:34:33Z 2013-12-20T15:34:33Z 2006-05-22 Journal Article http://documents.worldbank.org/curated/en/2006/05/17753358/preference-erosion-multilateral-trade-liberalization World Bank Economic Review doi:10.1093/wber/lhj010 http://hdl.handle.net/10986/16423 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	trade liberalization trade preferences preference erosion tariff reductions OECD GATT WTO
spellingShingle	trade liberalization trade preferences preference erosion tariff reductions OECD GATT WTO Francois, Joseph Hoekman, Bernard Manchin, Miriam Preference Erosion and Multilateral Trade Liberalization
description	Because of concern that tariff reductions in Organization for Economic Co-operation and Development (OECD) countries will translate into worsening export performance for the least developed countries, the erosion of trade preferences may become a stumbling block for multilateral trade liberalization. An econometric analysis of actual preference use shows that preferences are underused because of administrative burdens-estimated to be equivalent to an average of four percent of the value of goods traded. To quantify the maximum scope for preference erosion, the compliance cost estimates are used in a model-based assessment of the impact of full elimination of OECD tariffs. Taking into account administrative costs eliminates erosion costs in the aggregate and greatly reduces the losses for countries most affected by preference erosion.
format	Journal Article
author	Francois, Joseph Hoekman, Bernard Manchin, Miriam
author_facet	Francois, Joseph Hoekman, Bernard Manchin, Miriam
author_sort	Francois, Joseph
title	Preference Erosion and Multilateral Trade Liberalization
title_short	Preference Erosion and Multilateral Trade Liberalization
title_full	Preference Erosion and Multilateral Trade Liberalization
title_fullStr	Preference Erosion and Multilateral Trade Liberalization
title_full_unstemmed	Preference Erosion and Multilateral Trade Liberalization
title_sort	preference erosion and multilateral trade liberalization
publisher	Oxford University Press on behalf of the World Bank
publishDate	2013
url	http://documents.worldbank.org/curated/en/2006/05/17753358/preference-erosion-multilateral-trade-liberalization http://hdl.handle.net/10986/16423
_version_	1764433416810397696

Preference Erosion and Multilateral Trade Liberalization

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