Skip to main content Accessibility help
×
Hostname: page-component-7c8c6479df-5xszh Total loading time: 0 Render date: 2024-03-29T05:10:22.792Z Has data issue: false hasContentIssue false

14 - Trade Preferences and Economic Growth

An Assessment of the U.S. GSP Schemes in the Context of Least Developed Countries

from Part IV - Law and Development in Regional Initiatives

Published online by Cambridge University Press:  05 August 2011

Caf Dowlah
Affiliation:
City University of New York
Yong-Shik Lee
Affiliation:
The Law and Development Institute, Sydney
Gary Horlick
Affiliation:
Georgetown University Law Center
Won-Mog Choi
Affiliation:
Ewha Womans University School of Law, Seoul
Tomer Broude
Affiliation:
Hebrew University of Jerusalem
Get access

Summary

Introduction

About four decades ago, in the early 1970s, the now-defunct General Agreement on Tariff and Trade (GATT) adopted a special trade mechanism called the Generalized System of Preferences (GSP), which allowed developed countries to grant differential and favorable treatment to less developed countries. A major objective of the initiative was to increase imports into developed countries of semi-manufactured and manufactured goods from developing countries to promote industrialization and economic growth of the latter and thereby enhance greater integration of these countries into the global economy. Such trade preferences, especially tariff concessions, were expected to induce reallocation of factors of production from traditional sectors to more profitable manufacturing activities in developing countries and thus facilitate trade-based, as opposed to aid-based, international resource transfers from the developed to the developing nations.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bhagwati, JKrishna, P.Arvind, PanagariyaTrading Blocs: Alternative Approaches to Analyzing Preferential Trade AgreementsCambridge, MAMIT Press 1999
Baldwin, RT. Murray, MFN Tariff Reductions and LDC Benefits under the GSP 1977 87 Economic JournalCrossRefGoogle Scholar
Bartels, LorandThe Appellate Body Report in European Communities – Conditions for the Granting of Tariff Preferences to Developing Countries, WT/DS246/AB/R and its Implications for Conditionality in GSP ProgramsLinking Trade and Human Rights: Framework and Case StudiesBürgi, E.Pauwelyn, J.Cottier, T.OxfordOxford University Presshttp://ssrn.com/abstract=667283
Bartels, LorandThe WTO Enabling Clause and Positive Conditionality in the European Countries GSP Program 2003 6 Journal of International Economic LawCrossRefGoogle Scholar
Bora, BijitGryberg, RomanRazzaque, Mohammad A.Marginalization of LDCs and Small Vulnerable States in World TradeLondonCommonwealth Secretariat 2004CrossRefGoogle Scholar
Brenton, PIntegrating the Least Developed Countries into the World Trading System: The Current Impact of EU Preferences under Everything But Arms 2003 37 Journal of World TradeGoogle Scholar
Bronfenbrenner, MartinReview Article: Predatory Poverty on the Offensive: The UNCTAD Record 1976 24 Economic Development and ChangeGoogle Scholar
Brown, DrusillaTrade and Welfare Effects of the European Schemes of the Generalized System of Preferences 1989 37 Economic Development and Cultural ChangeCrossRefGoogle Scholar
Carrere, Cde Melo, JAre Different Rules of Origin Equally Costly? Estimates from NAFTAWashington, DCCenter for Economic Policy and Research 2004Google Scholar
Clark, Don PTrade versus Aid: Distributions of Third World Development Assistance 1991 39 Economic Development and ChangeGoogle Scholar
Cooper, William HGeneralized System of PreferencesCongressional Research Service (CRS)Washington, DCLibrary of Congress 2004Google Scholar
Dowlah, CafBackwaters of Global Prosperity: How Forces of Globalization and GATT/WTO Trade Regimes Contributed to the Marginalization of the World's Poorest NationsNew YorkPraeger 2004Google Scholar
Dowlah, CafThe Generalized System of Preferences of the United States: A Critical Analysis from the Perspectives of the Least Developed CountriesNew YorkCUNY Research Foundation 2005Google Scholar
Francois, JosephHoekman, BernardManchin, MiriamPreference Erosion and Multilateral Trade LiberalizationWashington, DCWorld Bank 2005CrossRefGoogle Scholar
Government Accountability Office 1994
Government Accountability Office 2001
General Agreement on Tariffs and TradeGeneralized System of PreferencesGenevaBasic Instrument and Selected Document 18S/24 1971Google Scholar
General Agreement on Tariffs and TradeBasic Instruments and Selected DocumentsGenevaUnited Nations 1972Google Scholar
General Agreement on Tariffs and TradeDifferential and More Favorable Treatment, Reciprocity and Fuller Participation of Developing CountriesGenevaUnited Nations 1979Google Scholar
Global Trade Practice Group (GTPG) 2005
Graham, Thomas RThe US Generalized System of Preferences for Developing Countries: International Innovation and the Art of the Possible 1978 72 American Journal of International LawCrossRefGoogle Scholar
Grossman, Gene MSykes, Alan OA Preference for Development: The Law and Economics of GSPBerkeleyUniversity of California Press 2004Google Scholar
Herin, J 1986
Hoekman, BernardKostecki, MichaelThe Political Economy of the World Trading SystemNew YorkOxford University Press 2001CrossRefGoogle Scholar
Hoekman, BernardProwse, SusanEconomic Policy Responses to Preference Erosion: From Trade as Aid to Aid for TradeWashington, DCWorld Bank 2005CrossRefGoogle Scholar
Howse, RobertIndia's WTO Challenge to Drug Enforcement Conditions in the European Community Generalized System of Preferences 2003 4 Chicago Journal of International LawGoogle Scholar
Hudec, RobertDeveloping Countries in the GATT Legal SystemLondonTrade Policy Research Center 1987Google Scholar
Lecomte, Henri-BernardACP-EU Trade Arrangements in a Post-Lome World: Towards a Successful PartnershipGenevaInternational Centre for Trade and Sustainable Development 2000Google Scholar
Lederman, DanielOzden, Caglar2003 US Trade Preferences: All Are Not Created EqualWashington, DCWorld Bank 2003Google Scholar
Limao, NunoOlarreaga, MarceloTrade Preferences to Small Developing Countries and Welfare Costs of Multilateral Trade LiberalizationWashington, DCWorld Bank 2005CrossRefGoogle Scholar
MacPhee, Craig ROguledo, Victor IThe Trade Effects of the US Generalized System of Preferences 1991 19 Atlantic Economic JournalCrossRefGoogle Scholar
Manchin, MiriamPreference Utilization and Tariff Reduction in European Union Imports from Africa, Caribbean, and Pacific CountriesWashington, DCWorld Bank 2005CrossRefGoogle Scholar
Mason, Amy MThe Degeneralization of the Generalized System of Preferences (GSP): Questioning the Legitimacy of the U.S. GSP 2004 54 Duke Law JournalGoogle Scholar
McCulloch, RachelPinera, JoseTrade as Aid: The Political Economy of Tariff Preferences for Developing Countries 1977 67 American Economic ReviewGoogle Scholar
Meltzer, Ronald I.The Politics of Policy Reversal: The US Response to Granting Trade Preferences to Developing Countries and Linkages between International Organizations and National Policy Making 1976 30 International OrganizationCrossRefGoogle Scholar
Michalopoulas, ConstantineThe Role of Special and Differential Treatment for Developing Countries in GATT and the World Trade OrganizationWashington, DCWorld Bank 1999CrossRefGoogle Scholar
Murray, TracyTrade Preferences for Developing CountriesNew YorkJohn Wiley and Sons 1977CrossRefGoogle Scholar
Nilsson, LarsComparative Effects of EU and US Trade Policies on Developing Country ExportsBrusselsEuropean Commission Trade Directorate General 2005Google Scholar
Ozden, CaglarReinhardt, ErickThe Perversity of Preferences: The Generalized System of Preferences and Developing Country Trade Policies, 1976–2000Washington, DCWorld Bank 2002Google Scholar
Page, SheilaPreference Erosion: Helping Countries to AdjustLondonOverseas Development Institute 2004 http://www.odi.org.uk/resources/download/2259.pdfGoogle Scholar
Panagariya, Ahttp://ideas.repec.org/p/wpa/wuwpit/0308014.html
Reynolds, Kara M 2005 http://ssrn.com/abstract=763665
Romalis, JohnWould Rich Country Trade Preferences Help Poor Countries Grow? Evidence from the Generalized System of PreferencesChicagoGSB 2003Google Scholar
Sally, RazeenWhither the WTO? A Progress Report on the Doha RoundWashington, DCCato Institute 2003Google Scholar
Stevens, ChristopherKennan, JaneGSP Reform: A Longer-Term Strategy (with Special Reference to the ACP)Brighton, EnglandInstitute of Development Studies 2005Google Scholar
The Trade PartnershipThe US Generalized System of Preferences Program: An UpdateWashington, DCThe Trade Partnership 2003Google Scholar
United Nations Conference on Trade and DevelopmentQuantifying the Benefits Obtained by Developing Countries from the Generalized System of PreferencesNew YorkUnited Nations 1999Google Scholar
United Nations Conference on Trade and DevelopmentThe Least Developed Country Report 2000New YorkUnited Nations 2000Google Scholar
United Nations Conference on Trade and DevelopmentTrade Preferences for LDCs: An Early Assessment of Benefits and Possible ImprovementsNew YorkUnited Nations 2003Google Scholar
United Nations Conference on Trade and DevelopmentThe Least Developed Country Report 2004New YorkUnited Nations 2004Google Scholar
U.S. International Trade Commission 2005
U.S. Trade Representative 2003
Wall, DavidProblems with Preferences 1971 47 International AffairsCrossRefGoogle Scholar
Ways and Means CommitteeReport to the Congress on the First Five Years’ Operation of the U.S. Generalized System of Preferences (GSP), Transmitted by the President of the United StatesWashington, DCUS Government Printing Press 1980Google Scholar
Ways and Means CommitteeThe President's Report to Congress on the Generalized System of Preferences as Required by Section 505 (B) of the Trade Act of 1974, as amendedWashington, DCU.S. Government Press 1990Google Scholar
Whalley, JohnNon-discriminatory Discrimination: Special and Differential Treatments under the GATT for Developing Countries 1990 100 Economic JournalCrossRefGoogle Scholar
World BankWorld Development Report, 2003New YorkOxford University Press 2004Google Scholar
World Trade OrganizationWorld Trade Development and Prospects for 2002GenevaWTO 2002Google Scholar
World Trade OrganizationWorld Trade Report 2003GenevaWTO 2003Google Scholar
GATT 1972
Clark, D.Trade versus Aid: Distributions of Third World Development Assistance 1991 39
Meltzer, Ronald I.The Politics of Policy Reversal: The US Response to Granting Trade Preferences to Developing Countries and Linkages between International Organizations and National Policy Making 1976 30
McCulloch, R.Pinera, J.Trade as Aid: The Political Economy of Tariff Preferences for Developing Countries 1977 67
United Nations 2003
1999
Ozden, C.Reinhardt, E.The Perversity of Preferences: The Generalized System of Preferences and Developing Country Trade Policies, 1976–2000Washington, DCWorld Bank 2002Google Scholar
Dowlah, C.The Generalized System of Preferences of the United States: A Critical Analysis from the Perspectives of the Least Developed CountriesNew YorkCUNY Research Foundation 2005Google Scholar
Francois, J.Hoekman, B.Manchin, M.Preference Erosion and Multilateral Trade Liberalization, World Bank Policy Research Working Paper no. 3730Washington, DCWorld Bank 2005Google Scholar
Dowlah, C.Backwaters of Global ProsperityNew YorkPraeger 2004 55Google Scholar
Hoekman, B.Kostecki, M.The Political Economy of the World Trading SystemNew YorkOxford University Press 2001CrossRefGoogle Scholar
2001
World Bank 1999
Graham, T.The US Generalized System of Preferences for Developing Countries: International Innovation and the Art of the Possible 1978 72
Wall, DavidProblems with Preferences 1971 47
GATT 1979
MacPhee, C.Oguledo, V.The Trade Effects of the US Generalized System of Preferences 1991 19
Bronfenbrenner, M.Review Article: Predatory Poverty on the Offensive: The UNCTAD Record 1976 24 825
GSP 2005
ACP 1976 2002
Manchin, M.Preference Utilization and Tariff Reduction in European Union Imports from Africa, Caribbean, and Pacific Countries, World Bank Policy Research Working Paper no. 3688Washington, DCWorld Bank 2005Google Scholar
U.S. Congress Ways and Means Committee, The President's Report to Congress on the Generalized System of PreferencesWashington, DCU.S. Government Press 1990 1
UNCTAD GSP Newsletter 2002
Global Trade Practice Group 2005
UNCTADThe Least Developed Country Report 2004 New YorkUnited Nations 2004Google Scholar
Bora, B.Gryberg, R.Razzaque, M.Marginalization of LDCs and Small Vulnerable States in World TradeLondonCommonwealth Secretariat 2004CrossRefGoogle Scholar
UNCTAD 2002
Herin, J.Rules of Origin and Differences between Tariff Levels in FETA and in the EC, European Free Trade AssociationEU Economic Affairs Department 1986Google Scholar
Carrere, C.Melo, J. deAre Different Rules of Origin Equally Costly? Estimates from NAFTAWashington, DCCenter for Economic Policy and Research 2004Google Scholar
Bridges 2001 Sally, R.Washington, DCCato Institute 2003Google Scholar
Lecomte, H.ACP-EU Trade Arrangements in a Post-Lome World: Towards a Successful PartnershipGenevaInternational Centre for Trade and Sustainable Development 2005Google Scholar
Brown, D.Trade and Welfare Effects of the European Schemes of the Generalized System of Preferences 1989 37 757
Whalley, J.Non-discriminatory Discrimination: Special and Differential Treatments under the GATT for Developing Countries 1990 100 Economic Journal1318CrossRefGoogle Scholar
Bhagwati, J.Krishna, J.Panagariya, A.Trading Blocs: Alternative Approaches to Analyzing Preferential Trade AgreementsCambridge, MAMIT Press 1999
Limao, N.Olarreaga, M.Trade Preferences to Small Developing Countries and Welfare Costs of Multilateral Trade LiberalizationWashington, DCWorld Bank 2006Google Scholar
Bartels, L.The WTO Enabling Clause and Positive Conditionality in the European Countries GSP Program 2003 6 507
Howse, R.India's WTO Challenge to Drug Enforcement Conditions in the European Community Generalized System of Preferences 2003 4
Pauwelyn, J.Cottier, T.Linking Trade and Human Rights: Framework and Case StudiesOxfordOxford University Press 2005Google Scholar
Bartels, L.The WTO Enabling Clause and Positive Conditionality in the European Countries GSP Program 2003 6 507
Grossman, G.Sykes, A.A Preference for Development: The Law and Economics of GSPBerkeleyUniversity of California 2004Google Scholar
WTO 2004
WTO 2004

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×