Effect of the Utilization of Non-Reciprocal Trade Preferences on Trade Policy in Beneficiary Countries

The present article aims to complement the nascent literature on the effect of non-reciprocal trade preferences (NRTPs) on beneficiary countries' trade policies. It has investigated, at the aggregate level, the effect of GSP programs and other trade preference programs provided by the QUAD countries on beneficiaries' trade policies. The analysis has revealed that the utilization of NRTPs is associated with greater trade policy liberalization. As the utilization rate of other trade preferences increases in countries that make simultaneous use of the two NRTPs, the utilization of GSP programs leads to greater reduction of tariffs and regulatory trade barriers, but at a diminishing rate for the latter.