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Did Non-reciprocal Zero Tariff Treatment Promote Export Diversification of Beneficiary Countries?——A Comparative Study on China and US Trade Policy towards Africa

【Authors】
SUN Zhina
【WorkUnit】
Zhejiang Normal University,321004.
【Abstract】

Non-reciprocal trade preferential treatment is an important tool for the World Trade Organization and the international community to support the development of developing countries,especially the least developed countries. In order to evaluate the effect of the policy,this paper takes the zero tariff treatment adopted by China and the United States towards Africa as an example,firstly compares and analyzes the characteristics of these two policies,and then,uses HS 8 code trade data during 2001—2017 to assess the impact of the two policies on the export diversification of beneficiary countries at the overall,sectoral and regional levels. The results show that the zero-tariff treatment implemented by the United States is divided into two clauses: AGOA-GSP and AGOA-Apparel. The zero-tariff treatment implemented by China (FOCAC) is superior to AGOA-GSP in terms of compliance with WTO rules,scope of beneficiary commodities,beneficiary national standards,origin of place standards and validity period,but inferior to AGOA. Apparel in terms of origin of place standards and preference margin. These characteristics lead to significant differences in the impact of the three types of policies on export diversification of beneficiary countries. At the overall level,FOCAC and AGOA-Apparel have a significant positive impact on export diversification of beneficiary countries,while AGOA-GSP has no significant impact; at the industry level,FOCAC has a significant impact on manufacturing,mining and agriculture of beneficiary countries,while AGOA's two provisions have no significant impact on export diversification in three sub-sectors of beneficiary countries; at the regional level,the impact of the three types of policies on export diversification in Africa is only effective in some regions.


JEL:F13,F14,F15

【KeyWords】
Trade Policy towards Africa,Zero-tariff Treatment,Export Diversification