Using Preferences to Promote LDC Exports: A Canadian Success Story?

Jose Anson, Universal Postal Union
Marc Bacchetta, World Trade Organization
Matthias Helble, World Health Organization

Abstract

The contribution of non–reciprocal preference schemes to least–developed countries (LDC) export performance is a topic of active debate. This paper examines the impact of a broad–based reform of the Canadian General System of Preferences (GSP) for LDC scheme on the export performance of LDCs in the textiles and clothing sector. The results indicate that a more flexible GSP scheme not only boosted the export volume, but also increased the number of product categories that were exported. The paper thus provides further confirmation that appropriately designed non–reciprocal preference schemes may help promote the export performance of LDCs.