Global trade liberalisation and an extension of EU trade preferences to other developing countries have increased the competition for ACP exporters. Despite free access for industrial exports and concessions on the protectionist Common Agricultural Policy, ACP exports to the EU have been disappointing.
Success stories are scarce.
Exports enjoying a relatively large preferential margin, such as textiles and clothing, canned tuna, and processed wood, have expanded, possibly because of their advantage in the EU market. Expectations of the role of preferences in expanding ACP exports were probably too high. Experiences in other countries suggest that preferences may be neither a necessary nor a sufficient condition to develop a dynamic export sector. The lack of other critical factors, such as adequate infrastructure, private investment, a well developed financial sector and a good human resource base, may restrict the accelerator role of preferences and limit the benefits that they provide. Preferential margins of a majority of ACP exports are insignificant because most of these products have free or preferential access for most exporters.