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Uncertainty in Preferential Trade Agreements : Impact of AGOA Suspensions on Exports / Habtamu Edjigu, Shushanik Hakobyan, Woubet Kassa.
Author
Edjigu, Habtamu
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Format
Book
Language
English
Published/Created
Washington, DC : World Bank, 2023.
Description
1 online resource (27 pages).
Availability
Available Online
World Bank E-Library Publications
Details
Subject(s)
Tariff preferences
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Exports
—
Africa
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Uncertainty
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Free trade
—
Africa
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Author
Hakobyan, Shushanik
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Kassa, Woubet
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Series
Policy research working papers.
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Summary note
This study examines the impact of the abrupt suspension of African Growth and Opportunity Act benefits on exports from eligible African countries. The study uses a triple difference-in-differences estimation that controls for both country- and product-level export changes. The results suggest that the suspension of the African Growth and Opportunity Act has had a considerable negative impact on the level of exports to the United States. The impact appears to be bigger for countries with a high African Growth and Opportunity Act utilization rate. The suspension is associated with a 39 percent decline in exports to the United States. At the product level, the suspension hurt apparel and textile exports, leading to a decline of their exports by about 88 percent. Understanding the impact of withdrawing access to a nonreciprocal trade agreement is particularly important now, as the European Union began negotiating Economic Partnership Agreements with African countries, as a sign of a shift to reciprocity; the United States is considering a similar path of negotiating free trade agreements with individual African countries. These developments underscore the need to prepare for a post-African Growth and Opportunity Act period with more reciprocity, as trade uncertainty is becoming rampant.
Source of description
Description based on publisher supplied metadata and other sources.
Other title(s)
Uncertainty in Preferential Trade Agreements
Other standard number
10.1596/1813-9450-10424
Statement on language in description
Princeton University Library aims to describe library materials in a manner that is respectful to the individuals and communities who create, use, and are represented in the collections we manage.
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