Analyzing the Expiration of the United States Generalized System of Preferences and Its Impact on Imports from Developing Countries

Marius Fossum, Inga Heiland and Viktor Moulin

No 11509, CESifo Working Paper Series from CESifo

Abstract: Many developed countries grant preferential tariffs to exporters from developing countries through the Generalized System of Preferences (GSP), aiming to enhance growth through exporting. On December 31st, 2020, the US GSP expired because the US Congress failed to agree on renewing the program’s funding. We use the expiration as a natural experiment to analyze the trade effects of the GSP countries’ loss of preferential access to the US market. Using a triple difference approach, we find that the expiration caused a significant pain for previously eligible exporters from developing countries: US imports of eligible products from eligible countries dropped by 5-10% due to the expiration.

Keywords: GSP; preferential tariffs (search for similar items in EconPapers)
JEL-codes: F13 O19 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-dev and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11509

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