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The New European Trade Preferences: Does ‘Everything But Arms’ (EBA) Help the Poor?

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  • Sheila Page
  • Adrian Hewitt

Abstract

The EU’s offer of tariff‐ and quota‐free access for all exports from the Least Developed Countries (for Everything but Arms) has been welcomed as part of the WTO‐led initiative to assist these countries. But it is not without problems. As the Least Developed compete more with other developing countries than with the EU, trade is likely to be diverted from other, sometimes poorer, countries. (‘Least Developed’ is an official classification, not a neutral measure of poverty.) EBA contradicts and impedes the EU’s policies of reciprocity and promotion of regions: it not only creates an alternative trade regime, but seems unilaterally to break existing agreements. The article concludes that the policy was adopted for essentially political, not developmental, motives.

Suggested Citation

  • Sheila Page & Adrian Hewitt, 2002. "The New European Trade Preferences: Does ‘Everything But Arms’ (EBA) Help the Poor?," Development Policy Review, Overseas Development Institute, vol. 20(1), pages 91-102, March.
    • Handle: RePEc:bla:devpol:v:20:y:2002:i:1:p:91-102
    DOI: 10.1111/1467-7679.00159
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    Citations

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    Cited by:

    1. Alan Matthews & Jacques Gallezot, 2006. "The role of EBA in the political economy of CAP reform," The Institute for International Integration Studies Discussion Paper Series iiisdp133, IIIS.
    2. Sèna Kimm Gnangnon, 2023. "Do unilateral trade preferences help reduce poverty in beneficiary countries?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 249-288, February.
    3. Theodore Levantis & Frank Jotzo & Vivek Tulpulé, 2005. "Sweetening the Transition in EU Sugar Preferences: The Case of Fiji," The World Economy, Wiley Blackwell, vol. 28(6), pages 893-915, June.
    4. Rivera, Sandra A. & Tsigas, Marinos E., 2005. "How does China’s growth affect India? An Economywide Analysis," Conference papers 331359, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Ayele, Getaneh Mihret, 2021. "The Effect of Everything But Arms Trade Preference on the Exports of Ethiopia: Empirical Evidence Using Gravity Model," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 30(02), October.
    6. Katerina Gradeva & Inmaculada Martínez-Zarzoso, 2009. "Trade as Aid: The Role of the EBA-Trade Preferences Regime in the Development Strategy," Ibero America Institute for Econ. Research (IAI) Discussion Papers 197, Ibero-America Institute for Economic Research.
    7. Gnangnon, Sèna Kimm, 2021. "Do Unilateral Trade Preferences Help Reduce Poverty in Beneficiary Countries?," EconStor Preprints 247346, ZBW - Leibniz Information Centre for Economics.
    8. Acharya, Rohini & Daly, Michael, 2004. "Selected issues concerning the multilateral trading system," WTO Discussion Papers 7, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Lucian Cernat & Sam Laird & Luca Monge-Roffarello & Alessandro Turrini, 2003. "The EU's Everything But Arms Initiative and the Least-developed Countries," WIDER Working Paper Series DP2003-47, World Institute for Development Economic Research (UNU-WIDER).
    10. Katerina Gradeva & Inmaculada Martínez-Zarzoso, 2016. "Are Trade Preferences more Effective than Aid in Supporting Exports? Evidence from the ‘Everything But Arms’ Preference Scheme," The World Economy, Wiley Blackwell, vol. 39(8), pages 1146-1171, August.

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