Has the ‘Everything But Arms’ Initiative Led to an Increase in Trade From LDCs into the EU?

Advisor Information

Catherine Co

Location

UNO Criss Library, Room 231

Presentation Type

Oral Presentation

Start Date

6-3-2015 9:00 AM

End Date

6-3-2015 9:15 AM

Abstract

In 2001 the Everything But Arms Initiative was born granting Least Developed Countries (LDCs) a nonreciprocal trade preference with members of the European Union. This preference extended tariff and quota free entry to all products except arms and munitions. It was expected to impact agricultural trade primarily as it eliminated significant barriers to trade for LDCs. Through a political lens this seems to be a major step forward for underdeveloped nations, but economists question its successfulness. Other limitations seem to deter LDCs export growth such as supply constraints and technical barriers. Little work has been done reviewing the program, and this paper aims to use empirical data to determine if any export growth exists. This paper will examine the history of the Everything But Arms, and effects of the program ten years after its origination. Specific interest will be paid to the impact on bananas, sugar, and rice trade along with agriculture as a whole.

Additional Information (Optional)

Winner of Honorable Mention Undergraduate Oral Presentation

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COinS
 
Mar 6th, 9:00 AM Mar 6th, 9:15 AM

Has the ‘Everything But Arms’ Initiative Led to an Increase in Trade From LDCs into the EU?

UNO Criss Library, Room 231

In 2001 the Everything But Arms Initiative was born granting Least Developed Countries (LDCs) a nonreciprocal trade preference with members of the European Union. This preference extended tariff and quota free entry to all products except arms and munitions. It was expected to impact agricultural trade primarily as it eliminated significant barriers to trade for LDCs. Through a political lens this seems to be a major step forward for underdeveloped nations, but economists question its successfulness. Other limitations seem to deter LDCs export growth such as supply constraints and technical barriers. Little work has been done reviewing the program, and this paper aims to use empirical data to determine if any export growth exists. This paper will examine the history of the Everything But Arms, and effects of the program ten years after its origination. Specific interest will be paid to the impact on bananas, sugar, and rice trade along with agriculture as a whole.