Problem

Undermining of trade preferences by non-tariff measures

Other Names:
Non-uniformity of tariff and non-tariff trade preferences
Nature:

Under the generalized system of preferences (GSP), preference-giving countries extend tariff preferences to certain products exported from designated beneficiary countries while retaining most-favoured-nation duties on imports from non-preferred supply sources (developed countries). Tariff preferences are intended to stimulate exports from beneficiaries and encourage investment in export-related activities. When exports of GSP-covered products confront non-tariff measures (NTMs) in markets of preference-giving countries, beneficiaries find it difficult to expand exports in response to tariff preferences, since NTMs counter the price incentives inherent in the preferential tariff margins.

Incidence:

Almost one quarter ($7.7 billion) of GSP-covered products ($33.3 billion) in 1986 trade terms were affected by NTMs in 10 OECD preference-giving countries.

Related UN Sustainable Development Goals:
GOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
09.09.2019 – 20:58 CEST