The biggest losers (and winners) from US trade liberalization

Kara Reynolds

The Journal of International Trade & Economic Development, 2009, vol. 18, issue 3, 421-442

Abstract: Many development experts worry that continuing reductions of tariff levels in high-income countries will limit trade flows from developing countries that benefit from preferential trade programs because of 'preference erosion.' Using a panel of US import data between the years of 1997 and 2005, I find that reductions in preference margins will significantly diminish imports of some products, particularly from lower-middle and low income countries; for example, a 1% reduction in the US tariff on a product that is currently imported duty-free from developing countries will decrease imports of that product from lower-middle income countries by an average of 2.6%. However, many products produced by developing countries fail to qualify for preferential tariffs, thus a gradual reduction in all US tariff rates is expected to have only a modest impact on trade flows from developing countries.

Keywords: Generalized System of Preferences; trade diversion; preferential tariffs (search for similar items in EconPapers)
Date: 2009
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Working Paper: The Biggest Losers (and Winners) from U.S. Trade Liberalization (2007)
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DOI: 10.1080/09638190902986553

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