Publication

This paper assesses the poverty impact of the European Commission's proposal for a graduation threshold in the Generalised System of Preferences (GSP) trade scheme. Under the GSP the EU levies tariffs on many imports from developing countries at a lower level. The proposal is that the number of countries eligible for the GSP is reduced from 176 states to about 80. On the basis of two complementary studies of the reform proposals, the authors conclude that product and income graduation is not an effective way of helping poor, uncompetitive states.