Trade preferences that do not deny market access
Jaime de Melo, Alberto Portugal-Perez, 29 May 2012Under a special regime called the third-country fabric provision, duty-free apparel exports from African countries to the US could use yarn originating from any country rather than from qualifying sources as had been the case previously for the US and continued to be the case for the EU until 2010. This column, exploiting this quasi-experimental situation, estimates that the gains from moving to the special regime were over 200%, six times greater than the gains from strictly moving to duty-free access.Full Article: Trade preferences that do not deny market access
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