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A new geography of preferences for Sub-Saharan African countries in a globalizing trading system

Author

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  • Fugazza, Marco
Abstract
Trade between developing countries, or South-South trade, has been growing rapidly in recent years following significant reductions in tariffs. However, significant barriers remain, and there is currently reluctance among many developing countries to undertake further reductions. In addition African countries and in particular least developed African countries are still marginal players in this reframing of geography of trade. The erosion of preferential access to Northern markets remains their major concern and the status quo in multilateral liberalization could be seen as a desirable scenario. This emphasis on developed countries markets, principally Europe and the US, is likely to represent a missed opportunity for African countries. Unless those countries are granted broader preferences by the European Union and other developed countries, especially in agriculture, significant gains would be obtained from trade preferences provided by other developing countries. To assess this we compare the potential effects of the removal of barriers on trade between African countries and other developing countries with the gains from developed country liberalization. A general equilibrium model containing information on preferential bilateral tariffs is used to estimate the impacts.

Suggested Citation

  • Fugazza, Marco, 2007. "A new geography of preferences for Sub-Saharan African countries in a globalizing trading system," MPRA Paper 11575, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11575
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    File URL: https://mpra.ub.uni-muenchen.de/11575/1/MPRA_paper_11575.pdf
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    References listed on IDEAS

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    1. Antoine Bouët & Simon Mevel & David Orden, 2007. "More or Less Ambition in the Doha Round: Winners and Losers from Trade Liberalisation with a Development Perspective," The World Economy, Wiley Blackwell, vol. 30(8), pages 1253-1280, August.
    2. Stephen Redding & Anthony Venables, 2004. "Geography and Export Performance: External Market Access and Internal Supply Capacity," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 95-127, National Bureau of Economic Research, Inc.
    3. Patrick Low, 2005. "Multilateral Solutions to the Erosion of Non-Reciprocal Preferences in NAMA," Working Papers id:289, eSocialSciences.
    4. Marco Fugazza, 2004. "Export Performance And Its Determinants: Supply And Demand Constraints," UNCTAD Blue Series Papers 26, United Nations Conference on Trade and Development.
    5. Sébastien Jean & David Laborde & Will Martin, 2005. "Consequences of Alternative Formulas for Agricultural Tariff Cuts," Working Papers 2005-15, CEPII research center.
    6. Robert E. Baldwin & L. Alan Winters, 2004. "Challenges to Globalization: Analyzing the Economics," NBER Books, National Bureau of Economic Research, Inc, number bald04-1.
    7. Hoekman. Bernard & Prowse, Susan, 2005. "Economic policy responses to preference erosion : from trade as aid toaid for trade," Policy Research Working Paper Series 3721, The World Bank.
    8. Hoekman, Bernard & Ozden, Caglar, 2005. "Trade preferences and differential treatment of developing countries : a selective survey," Policy Research Working Paper Series 3566, The World Bank.
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    Cited by:

    1. Sandrey, Ron & Jensen, Hans Grinsted & Vink, Nick, 2011. "The welfare impact of a free trade agreement between SACU and Mercosur," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 50(1), June.
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    More about this item

    Keywords

    Africa; Exports; Market Access; Preferences;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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