Essays on U.S. Trade Preference Programs

This dissertation examines the efficacy of the US Generalized System of Preferences (GSP),a trade preference program that provides tariff exemptions to developing countries on their exports to the US. Since its inception in the 1970s, the GSP has been an integral part of the US development assistance efforts. Its objective is to induce economic growth and alleviate poverty in developing countries by stimulating their exports to the US. Yet the evidence suggests that developing countries under utilize the benefits accorded to them; GSP benefits are claimed for just 60 percent of eligible imports entering the US. Additionally, tariff exemptions are suspended for a subset of developing countries once their exports to the US exceed certain thresholds, known as Competitive Needs Limits (CNLs); these are arguably the most competitive exporters who are perceived to no longer need preferential treatment to access the US market.

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