Uncertainty in Preferential Trade Agreements
| dc.creator | Edjigu, Habtamu | |
| dc.creator | Hakobyan, Shushanik | |
| dc.creator | Kassa, Woubet | |
| dc.date | 2023-05-01T16:30:51Z | |
| dc.date | 2023-05-01T16:30:51Z | |
| dc.date | 2023-05-01 | |
| dc.date.accessioned | 2026-07-01T00:35:40Z | |
| dc.description | 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. | |
| dc.format | application/pdf | |
| dc.format | text/plain | |
| dc.identifier | http://documents.worldbank.org/curated/en/099212404272329040/IDU0e80fbc010cd72049ca0a9560a77e6c4bf776 | |
| dc.identifier | https://openknowledge.worldbank.org/handle/10986/39754 | |
| dc.identifier | 10.1596/1813-9450-10424 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/406900 | |
| dc.language | English | |
| dc.language | en | |
| dc.publisher | World Bank, Washington, DC | |
| dc.relation | Policy Research Working Papers; 10424 | |
| dc.rights | CC BY 3.0 IGO | |
| dc.rights | https://creativecommons.org/licenses/by/3.0/igo/ | |
| dc.rights | World Bank | |
| dc.subject | AFRICA GROWTH AND OPPORTUNITY ACT (ACGOA) | |
| dc.subject | PREFERENTIAL TRADE AGREEMENT | |
| dc.subject | EXPORT UNCERTAINTY | |
| dc.subject | EXPORT DECLINE | |
| dc.subject | FREE TRADE AGREEMENT | |
| dc.subject | RECIPROCITY | |
| dc.subject | APPAREL AND TEXTILE EXPORTS | |
| dc.title | Uncertainty in Preferential Trade Agreements | |
| dc.title | Impact of AGOA Suspensions on Exports | |
| dc.type | Working Paper |