Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries

Despite the long relationship between the EU and the African, Caribbean and Pacific (ACP)countries aimed at encouraging their exports while stimulating growth and investment, the ACPstates still face difficulties in integrating into the world economy. This paper examines the non-leastdeveloped ACP countries preferential trade with the EU. The objective is to explain thedeterminants of preferential exports of ACP countries towards the EU and to assess the impact ofpreferences on trade volumes. We also investigate the existence of a threshold in the offered dutyreduction under which traders have no incentives to ask for preferences.