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preferential agreements

Make Preferential Treatment Real For Africa: Relax Rules of Origin

Alberto Portugal-Perez's picture

Fabric from a factory in Malawi. Source: http://www.flickr.com/photos/8488599@N04/5129135667/Countries that want to use preferential trade agreements to boost trade with Africa should re-examine the rules of engagement. New evidence shows that certain rules underlying preferential trade agreements are drastically hindering their intended benefits. In fact, in a World Bank Policy Research Paper and an article forthcoming in The World Bank Economic Review, we find that relaxing those definitions could increase the agreements’ benefits by four times more than just removing tariffs.