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The role of importers and exporters in the determination of the U.S. tariff preferenes granted to Latin America, Volume 1
 
Author:Silva, Peri; Collection Title:Policy Research working paper series ; no. WPS 3518
Country:Latin America; Date Stored:2005/03/06
Document Date:2005/02/01Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Rules of Origin; Economic Theory & Research; Export Competitiveness; Trade Policy; Free Trade; Trade and Regional IntegrationLanguage:English
Region:Latin America & CaribbeanReport Number:WPS3518
Volume No:1  

Summary: This paper investigates the role played by domestic importers and foreign exporters in improving preferential access to the domestic market. To this end, the framework used in this paper extends the protection for sale analysis to explicitly model the role of domestic importers and foreign exporters in the determination of preferential trade treatment. The predictions of the model are tested using data on preferential trade between the United States and Latin American countries. The results suggest that Latin American exporters and U.S. importers' lobbying efforts have a significant and important role in determining the extent of preferential access granted by the United States. More interestingly, these findings also show that U.S. importers capture a very substantial share of the rents generated by tariff preferences. These results therefore shed a pessimistic view on preferential trade schemes as a reliable source of gains for developing countries.

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