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Export Subsidies by Developed Countries: Barriers to African External Trade

Export Subsidies by Developed Countries: Barriers to African External Trade

While advocates of liberalization in the economies of the developing countries have
called for reduction in subsidies, the high levels of subsidies in developed countries have
increased significantly especially in the OECD countries. Subsidies have increased from
US$247 billion in 1986-88, to US$270 billion in 1997 and US$274 billion in 1998.
Similarly, US subsidy levels increased from US$41.4 billion in 1986-88 to US$50.0
billion in 1998. While the Uruguay Round advocates the reduction of subsidies in most
developing countries, subsidies have been on the increase in OECD countries and the
United States.

African Development Bank
Economic Research Working Paper Series
Enhancing Africa’s Trade: From Marginalization
to an Export-Led Approach to Development
Milton A. Iyoha
Professor, Department of Economics & Statistics
University of Benin, Nigeria
Economic Research Working Paper
No 77 (August 2005)





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African Development Bank
(Visit African's Website) The African Development Bank is the premier financial development institution of Africa, dedicated to combating poverty and improving the lives of people of the continent and engaged in the task of mobilizing resources towards the economic and social progress of its Regional Member Countries.The Bank’s s mission is to promote economic and social development through loans, equity investments, and technical assistance. The ADB is a multilateral development bank whose shareholders include 53 African countries and 24 non-African countries from the Americas, Asia, and Europe. It was established in 1964, with its headquarters in Abidjan, Côte d’Ivoire, and officially began operations in 1967.

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