and Consistent 21. Benefits for LDCs from EM preference schemes are handicapped by RoO similar to those employed by the advanced market countries ( Box 4 ). Despite complexities, the preference schemes of EMs have certain positive attributes that can be replicated in other schemes. Under China’s scheme, for example, origin (and thus preference benefits) can be conferred on a product based either on a minimum local value added threshold or a change in tariff heading. India’s low 30 percent value added threshold gives potential LDC exporters flexibility in
liberal rules of origin allow producers to source inputs flexibly. Such rules implicitly acknowledge LDCs’ low capital intensity and lack of horizontal or vertical integration. Under China’s preference program, for example, origin (and thus preference benefits) can be conferred on a product based either on a minimum local value-added threshold or a change in tariff classification—implicit acknowledgment that the product is different and the LDC has added value. India’s low 30 percent value-added threshold gives potential LDC exporters flexibility in sourcing their
export financing should be removed to allow exporters flexibility to borrow from domestic and foreign sources. This includes, in particular, the lifting of the back-to-back usance import L/C requirement for RMG in the medium term. In the short run, the interest rate ceiling on export loans should be abolished as it provides a disincentive for local banks to lend to exporters and potential exporters. Provide effective information on markets abroad 135. The role of the EPB could be further strengthened toward information collection and data dissemination. Such