Interprétation économique, avantages et limites du découplage des ...

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Hervé Guyomard, INRA SAE2 Rennes and CEPII Paris. AFD – IFRI Conference, Trade for development: The future of special and differential treatment of ...

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Agricultural trade preferences: The case of EU / ACP-LDC relations Hervé Guyomard, INRA SAE2 Rennes and CEPII Paris AFD – IFRI Conference, Trade for development: The future of special and differential treatment of developping countries, Paris, October 28, 2005Outline of the presentation • EU trade preferences (ACP, GSP, EBA) • EU trade with ACP countries and LDCs • Assessment of EU trade preferences • Erosion of preferences • Basic mechanisms • Bananas • SugarTrade preferences of the EU (developing countries) • Mediterranean partnerships (Barcelona process) • ACP preferences • Generalised System of Preferences (SPG), including the recent Everything but Arms (EBA) initiativeTrade preferences of the EU (developing countries) • ACP preferences (79 ACP countries) – Treaty of Rome (1957) – From Yaoundé I (1969-75) to Lomé IV (1990-2000) – An increasing number of ACP countries – Unilateral trade preferences for most ACP exports to the EU (duty free access) • Except for agricultural CAP (Common Agricultural Policy) products • Specific provisions for some agricultural products, notably rice, beef, sugar and bananas (tariff rate quotas) •G ATT / W TO w aiverTrade preferences of the EU (developing countries) • ACP preferences (79 ACP countries) – 20-year Cotonou Agreement (2000-20) • Progressive process to establish a free trade area (Economic Partnership Agreements) • GATT / WTO compatible • Transition period 2000-2007 (protocols on beef, sugar and bananas)Trade preferences of the EU (developing countries) • GSP – Preferential treatment for goods exported by developing countries (UNCTAD in 1964) – Enabling Clause of the GATT (from 1979, for an indefinite period) – Non-discriminatory (except for LDCs), non-reciprocal and autonomous trade preferences – First GSP scheme by the EU in 1971 (quotas and ceilings by country and product)Trade preferences of the EU (developing countries) • GSP – From 1975, tariff preferences varying according to the sensitivity of products – Typically, “exclusion” of agricultural products – Five GSP arrangements, including general arrangements and the EBA initiative (2001)Trade preferences of the EU (developing countries) • The EBA initiative (49 countries) – February 2001 – For the 49 LDCs, free and unlimited access to the EU market but arms and munitions, and 3 agricultural products – Bananas (January 2006), rice (July 2009) and sugar (September 2009); during the transition period, duty-free tariff rate quotas (relatively small quantities): • For rice, 2517 tonnes (01/02) to 6696 tonnes (08/09) • For sugar, 74 185 tonnes (01/02) to 197 335 tonnes (08/09)EU trade with ACP countries and LDCs • ACP countries – The share of ACP countries in global trade is very small and decreasing (from 6 % in 1980 to 2 % nowadays) – Two dependencies: for 50 %, exports to the EU and for 50 % also, agricultural raw products – ACP / EU agricultural trade • exports to the EU relatively stable since the end of the 1990s (9.4 billion US dollars) • Imports from the EU around 5 billion US dollars (same level in 1995) • Great disparities (countries, imported and exported products): commodity dependenceEU trade with ACP countries and LDCs • LDCs – Same general picture (commodity dependence, importance of the EU market) – Importance of agriculture, production and exports (GDP, employment, source of foreign exchange) – Negative agricultural trade balance (700 million US dollars) – NB. On a total of 49 LDCs, only 9 countries are not ACP countries (South Asia)