utilization rates under preferential trade arrangements for least developed countries under the LDC duty scheme

Note by the Secretariat^[1]

Revision

1  INTRODUCTION

1.1.  An examination and better understanding of preference utilization can offer useful insights about best practices and limitations of Preferential Trade Arrangements (PTA). If trade operators are not using preferences or only using them to a limited extent, the resulting low preference utilization could indicate that certain conditions are reducing the ability of exporters to fully seize preferential opportunities. Different factors could explain low utilization of preferences. However, because compliance with rules of origin is a central prerequisite to utilizing preferences, low preference utilization rates may indicate that origin requirements are overly strict or costly.