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Assessing EU trade preferences for developing countries' development and food security
[Évaluation des préférences de l’UE sur les échanges commerciaux avec les pays en voie de développement : impact sur la sécurité alimentaire et le développement]

Author

Listed:
  • Parisa Aghajanzadeh-Darzi

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Cecilia Bellora

    (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)

  • Jean-Christophe Bureau

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)

  • Anaïs Goburdhun

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

Abstract
The EU has a long history of specific trade arrangements with developing countries. Under a variety of schemes, the EU allows developing countries to export goods to the Community market with reduced or zero duty. The stated objective is to encourage economic growth and to promote sustainable development in developing countries through their integration into the world trade system. Recently, these schemes have experienced significant reform. This applies particularly to the case of the Generalized System of Preferences and the arrangements affecting African, Caribbean, and Pacific countries. In addition, preferential (reciprocal) trade agreements are replacing non-reciprocal tariff concessions. We describe the current status of EU trade policy with developing countries, focusing on those where food security is a major issue. We assess the impact of selected preferential schemes, using an applied general equilibrium model. Our counterfactual simulations show that removing EU preferences will impact negatively on some developing country economies; both exports and gross domestic product will go down (particularly in North and Sub-Saharan African regions). Overall, our simulations suggest that EU preferential agreements provide export opportunities and contribute to higher incomes, particularly the least developed countries. However, their contribution to food security is indirect. Because of the magnitude of the prices and income changes which we measure at the aggregate level, the impact on food and nutrition security indicators seems limited. To explore in more depth the impact of EU preferences on the food security of particularly vulnerable segments of the population would require our simulations to be combined with household data.

Suggested Citation

  • Parisa Aghajanzadeh-Darzi & Cecilia Bellora & Jean-Christophe Bureau & Anaïs Goburdhun, 2015. "Assessing EU trade preferences for developing countries' development and food security [Évaluation des préférences de l’UE sur les échanges commerciaux avec les pays en voie de développement : impa," Working Papers hal-01589957, HAL.
    • Handle: RePEc:hal:wpaper:hal-01589957
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    References listed on IDEAS

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    1. Pangaribowo, Evita Hanie & Gerber, Nicolas & Torero, Maximo, 2013. "Food and Nutrition Security Indicators: A Review," Working Papers 147911, University of Bonn, Center for Development Research (ZEF).
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    4. Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012. "MAcMap-HS6 2007, an Exhaustive and Consistent Measure of Applied Protection in 2007," International Economics, CEPII research center, issue 130, pages 99-122.
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    7. Jean‐Christophe Bureau & Raja Chakir & Jacques Gallezot, 2007. "The Utilisation of Trade Preferences for Developing Countries in the Agri‐food Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 175-198, June.
    8. Lionel Fontagné & Jean Fouré & Maria Priscila Ramos, 2013. "MIRAGE-e: A General Equilibrium Long-term Path of the World Economy," Working Papers 2013-39, CEPII research center.
    9. Antoine Bouët & Yvan Decreux & Lionel Fontagné & Sébastien Jean & David Laborde, 2008. "Assessing Applied Protection across the World," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 850-863, November.
    10. Arvind Panagariya, 2002. "EU Preferential Trade Arrangements and Developing Countries," The World Economy, Wiley Blackwell, vol. 25(10), pages 1415-1432, November.
    11. Yvan Decreux & Hugo Valin, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 2007-15, CEPII research center.
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    More about this item

    Keywords

    Union européenne; Politique commerciale; Politique agricole; Securité alimentaire; Accord préférentiel; Pays en voie de développement;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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