ABSTRACT

Trade preferences for developing countries continue to be a major part of the world trading system. Under the Generalized System of Preferences (GSP) developing countries have access to most OECD markets, and historical ties have been recognized in schemes such as the EU’s Lomé and Cotonou agreements. Recent years have seen several major extensions of preference schemes. The EU’s Everything But Arms (EBA) scheme, initiated in 2001, gave duty-free access to least developed countries (LDCs) in (almost) all products. The US introduced the African Growth and Opportunities Act (AGOA) in 2000, improving market access for eligible Sub-Saharan African (SSA) countries. The US also operates the Caribbean Basin Initiative and the Andean Trade Promotion Act. 1