A Note on the Effects of Graduation under the US GSP on Africa

The United States of America Trade and Tariff Act of 1984 includes a new measure, country graduation, designed to shift a greater share of the benefits of the US Generalized System of Preferences (GSP) from the more advanced developing countries to poorer beneficiary countries. Under the Act, US imports of GSP products from a graduated country will no longer be eligible for GSP duty-free treatment. Instead, imports will be subject to the normal most-favoured nation tariff rates. This note presents estimates of the effects of graduating Hong Kong, South Korea, Singapore and Taiwan on the poorest countries of Africa. Results show that the removal of these four countries will do little to increase the GSP benefits of the African beneficiary countries. Country graduation will not lead to a more equitable distribution of benefits under the GSP, rather it will only reduce the total benefits. Bibliogr., notes, ref.

Title: A Note on the Effects of Graduation under the US GSP on Africa
Authors: Mendez, Jose A.
Murray, Tracy
Year: 1990
Periodical: Journal of Development Studies
Volume: 26
Issue: 2
Period: January
Pages: 313-323
Language: English
Geographic terms: Africa
United States
External link: https://doi.org/10.1080/00220389008422154
Abstract: The United States of America Trade and Tariff Act of 1984 includes a new measure, country graduation, designed to shift a greater share of the benefits of the US Generalized System of Preferences (GSP) from the more advanced developing countries to poorer beneficiary countries. Under the Act, US imports of GSP products from a graduated country will no longer be eligible for GSP duty-free treatment. Instead, imports will be subject to the normal most-favoured nation tariff rates. This note presents estimates of the effects of graduating Hong Kong, South Korea, Singapore and Taiwan on the poorest countries of Africa. Results show that the removal of these four countries will do little to increase the GSP benefits of the African beneficiary countries. Country graduation will not lead to a more equitable distribution of benefits under the GSP, rather it will only reduce the total benefits. Bibliogr., notes, ref.