Preference Erosion Study
When the Doha Development Agenda (DDA) talks are concluded, it is likely that they will have implications for preference erosion, - particularly since trade preferences proved to be a difficult negotiation subject during the Sixth Ministerial Conference of the World Trade Organization (WTO). The slow pace of the DDA, however, provides a widow of opportunity to address the possible impacts of preference erosion.
In the UNCTAD report, “Erosion of Trade Preferences in the Post Hong Kong Framework: From “Trade is Better than Aid” to “Aid for Trade”, it was observed that despite the preferential trade flows being relatively small, they have significant poverty implications. In that regard, the study recommended the need to address preference erosion through Enhanced Integrated Framework and the Aid for Trade Initiative as well as the extension of the market access and reform of rules of origin.
At the same time the COMESA countries are involved in finalizing the EPA negotiations, representing another important element of their trading opportunities where preferences and rules of origin are key elements.
RTFP therefore agreed to fund a firm-level assessment of possible impacts of preference erosion and rules of origin reform options, as a follow up to the UNCTAD study, which focused on tariff line analysis.
In the early part of 2008, consultants in Zambia, Kenya, Uganda, Malawi, Swaziland, Mauritius and Madagascar undertook extensive surveys of the situation in their countries – Reports are available.
In the middle of 2008 a similar set of studies was undertaken in the East African Community countries ….LINK