Trade preferences for developing countries Thom Achterbosch Frank van Tongeren Sander de Bruin Project code 62760 May 2003 Report 6.03.11 Agricultural Economics Research Institute (LEI), The Hague I The Agricultural Economics Research Institute (LEI) is active in a wide array of research which can be classified into various domains. This report reflects research within the fol- lowing domain: Statutory and service tasks Business development and competitive position Natural resources and the environment Land and economics Chains ; Policy Institutions, people and perceptions Models and data II Trade preferences for developing countries Achterbosch, T.J., S. de Bruin and F.W. van Tongeren The Hague, Agricultural Economics Research Institute (LEI), 2003 Report 6.03.11; ISBN 90-5242-827-1; Price € 12.25 (including 6% VAT) 53 p., fig., tab. This report draws on a body of existing literature to assess the impact of trade preferences granted by the European Union on trade and welfare in developing countries. It is argued that the Everything But Arms amendment to the EU preference scheme will have limited effect on export potential and welfare in the least developed countries (LDCs). The EU would do well to simplify compliance with their rules of origin. When LDCs are granted deeper preferences under continued domestic agricultural policies in the EU, US, Canada and Japan, resources in LDCs will move towards the agricultural sector. The expected ef- fect impact on LDCs of extending preferences to non-LDCs is quite small, while the negative effect of reductions of MFN tariffs under trade liberalisation is stronger. Orders: Phone: 31.70.3358330 Fax: 31.70.3615624 E-mail:
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