Reviving AGOA
In this brief Kimberly Ann Elliott discusses the two main priorities the Obama administration should focus on in order to revive the AGOA program and expand its benefits.
In this brief Kimberly Ann Elliott discusses the two main priorities the Obama administration should focus on in order to revive the AGOA program and expand its benefits.
This brief summarizes the findings of the CGD Global Trade Preference Reform Working Group and its recommendations to make preference programs better promote prosperity and stability in the world's poorest countries.
Many Americans see trade openness as a threat. Yet access to rich-country markets is crucial for poor people in developing countries to improve their lives. In a new CGD brief based on her essay in The White House and the World: A Global Development Agenda for the Next U.S. President, senior fellow Kimberly Elliott suggests a trade policy approach that would address Americans’ concerns and still be pro-poor. One ingredient: treat market access for the world’s poorest countries as a development issue, not trade policy.
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By any measure, the United States is one of the most open economies in the world—importing more than $1 trillion worth of goods duty-free in 2006 alone. Yet poor nations still pay much higher U.S. tariffs than rich countries—an average of 15 percent on a quarter of their imports, compared to 2-5 percent for rich countries. Not only is this unfair, it also undermines American interests by hindering growth in the poorest countries, thereby making them more vulnerable to epidemic diseases, terrorists, and transnational criminal organizations. In this new CGD Brief, senior fellow Kimberly Ann Elliott makes the case for the U.S. to fix this problem by permanently granting all least-developed countries 100% duty-free, quota-free market access and simplifying rules of orgin.
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In this brief we focus on potential disruptions in poor countries and the policy priorities for coping with them. In particular, we recommend that the United States, which is the only rich country that does not grant tariff-free access for imports from all least-developed countries, provide this access as quickly as possible. In addition, to take advantage of any resulting opportunities, beneficiary countries must adopt domestic reforms to encourage greater productivity.