Abstract
Developing countries continue to place preferences as a centrepiece in their
negotiating agenda. The feasibility of allowing preferences has, however, been
questioned by economists from a development perspective. This article evaluates the
efficiency of preferences as a means to enhance market access and identifies the main
impediments to its effective utilization by the beneficiary countries in Switzerland.
The findings show that the benefits from preferences are concentrated selectively in a
few beneficiary countries and that nearly one-third of imports potentially covered
under preferences come under Most-favoured-nation (MFN) tariffs. Both tariff and
non-tariff barriers influence the total extent of market access allowed to the
beneficiary countries. In recognition of the potential of trade to contribute to
development, the article suggests changes to the design of preferences, from both a
development objective and the perspective of the trading system, so that preferences
can be utilized as a trade policy instrument by Switzerland to help developing
countries integrate into the multilateral trading system.
Original language | English |
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Pages (from-to) | 1073-1090 |
Number of pages | 18 |
Journal | Journal of World Trade |
Volume | 41 |
Issue number | 5 |
Publication status | Published - 2007 |