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nupi.no / Activities / Department of International Economics / Prosjekter / Trade Preferences for Developing Countries - GSP

Research projects


[2004-2005]

Trade Preferences for Developing Countries - GSP

NUPI has made a study of Norway's tariff preferences for developing countries, for the Norwegian Ministry of Foreign Affairs.

 


Participants

Arne Melchior
Per Botolf Maurseth


 

Trade Preferences for Developing Countries - GSP

 

The study shows that Norway and the EU have generous tariff preferences for the Least Developed Countries (LDCs), but this has not led to massive imports. For industrial goods in Norway, however, market access for other developing countries has been significantly improved over the last decade. There has been a substantial import increase, due to extensive Chinese exports.
For agricultural goods, the LDCs face zero tariffs, but this has not led to large import increases. For other developing countries, GSP is limited. While tariff protection for traditional developing country commodities such as coffee, tea and spices is limited, there are high tariffs for e.g. cereals, animal feed, meat and some vegetables. For these, there is a substantial import potential that may be realised through improved GSP. For some goods, tariffs are equivalent to thousands of percentage points, so substantial cuts are needed.
The NUPI study recommends that all tariffs for industrial goods are removed, and that non-tariff imports of agricultural goods are allowed for a country group that also includes low-income countries beyond the LDCs. For other developing countries, the study recommends that improved GSP for agricultural goods should be granted, however not zero tariffs.
The study will serve as background material for a planned inter-ministerial working group that will consider proposals for reform in the GSP system. The shaping of GSP will also depend on the results from the current negotiation round in the WTO.

 


 

Finansiering

Norwegian Ministry of Foreign Affairs


 

Publications




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