Recommendations of the CGD Working Group on Global Trade Preference Reform Kimberly Ann Elliott Center for Global Development for the UN OHRLLS Brainstorming on LDC IV July 15, 2010, New York

CGD Report Recommendations High-income countries should by next year: Expand coverage to all products and all LDCs Add flexibility and make rules of origin trade- promoting (cumulation among all DCs) Ensure program stability and predictability to encourage investment + Advanced developing countries with programs should adopt the same principles by 2015

Where do we stand? Product coverageFlexibility of rules of origin Length of program Canada99%High10 years E.U.100%LowPermanent Japan98%Low10 years U.S.83-98% (GSP for LDCs to AGOA) Moderate to high (AGOA) Ad hoc Korea85% (95% by 2012) LowUncertain

Where do we stand? BrazilAnnounced plans to provide duty-free coverage 80% of tariff lines, moving to 100% over four years ChinaExpanding to 95% of tariff lines for Africa; ad hoc arrangements for others IndiaPhasing in duty-free for 85% of tariff lines, with reduced duties on 9% TurkeyFollows EBA, but excludes agriculture

Better coordinate trade and aid Trade facilitation needed in both developed (SPS) and developing (customs, infrastructure) countries Ensure sufficient resources for EIF, TFF as mechanisms to coordinate aid for trade Consider a doing business facility to support SMEs and other local investors Leverage investments to promote local, regional trade as well