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An Assessment of the UK’s Trade with Developing Countries under the Generalised System of Preferences.

Akinmade, B., Khorana, S. and Adedoyin, F., 2020. An Assessment of the UK’s Trade with Developing Countries under the Generalised System of Preferences. Journal of Public Affairs. (In Press)

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DOI: 10.1002/pa.2308

Abstract

The European Union (EU) Generalised System of Preferences (GSP Scheme) grants preferential treatment to 88 eligible countries. There are, however, concerns that the restrictive features (such as Rules of Origin, Low Preference Margin and Low Coverage) of the existing scheme indicate gravitation towards commercial trade agenda to which efficiency imperatives appear subordinated. Whether these concerns are genuine is an empirical question whose answer largely determines whether, after Brexit, the UK continues with the existing specifics of the EU scheme or develops a more inclusive UK-specific GSP framework. This study quantitatively examines the efficiency of the EU GSP as it relates to UK beneficiaries from 2014 to 2017. We draw on the descriptive efficiency estimation (The utilisation Rate, Potential Coverage Rate, and the Utility Rate) using import data across 88 beneficiary countries and agricultural products of the Harmonised System Code Chapter 1 to 24. Asides the Rules of Origin that, generally, harm the uptake of GSP, low preference margin is found to cause low utilisation rates in a non-linear manner. Essentially, a more robust option (such that allows “global Cumulation” or broader product coverage) could, substantially, lower the existing barriers to trade and upsurge the efficiency of the GSP scheme.

Item Type:Article
ISSN:1472-3891
Uncontrolled Keywords:Rules of Origin ; Preference Margin ; Preference Utilisation ; Potential Coverage Rate ; Post-Brexit
Group:Bournemouth University Business School
ID Code:34333
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:27 Jul 2020 09:49
Last Modified:02 Sep 2020 08:48

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