The Future of Agriculture Trade Preferences Granted by the EU to Developing Countries

The EU has notified the WTO of 21 bilateral trade agreements that are currently in force with nonmember countries (WTO, 2005). Under these agreements, the EU grants almost unlimited access to its industrial markets, but only limited preferential access to its agricultural markets for various countries and country groups. In addition, the EU grants preferential access to its agricultural markets under nonreciprocal schemes: the General System of Preferences (GSP), the Everything but Arms Initiative (EBA) and the Cotonou Agreements. In 2002, 47% of dutiable agricultural imports entered the EU market under preferential schemes (OECD, 2005). EU imports of agricultural and food products under preferential arrangements are thus the rule rather than the exception, and imports that occur under most favored nation (MFN) conditions are the least favored ones....