The Future of Preferential Trade Arrangements for Developing Countries and the Current Round of WTO Negotiations on Agriculture
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Trade preferences for developing countries have been a feature of industrialized countries’ commercial policies for nearly 40 years. However, with overall trade liberalization, tariff preferences are gradually losing importance. In agriculture, on the other hand, they can still be potentially valuable because MFN tariffs are extremely high in many cases, though they are also in the process of being reduced. Yet, because of the ‘sensitive’ nature of their agricultural policies, developed countrie s have usually been reluctant to provide deep preferences for agricultural products. At the same time, some special preferential regimes have provided significant concessions for selected agricultural products, for limited groups of developing countries. The EU’s preferences for sugar imports from selected ACP countries are a case in point. Hence the picture is very diverse when it comes to preferential treatment of agricultural exports from developing countries.