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Choosing sensitive agricultural products in trade negotiations:

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  • Jean, Sebastien
  • Laborde, David
  • Martin, Will

Abstract

"The formula approach used in many trade negotiations involves large formula cuts in high tariffs, with flexibilities that allow smaller cuts for selected products. Difficulties in evaluating the effects of these exceptions can create major problems. We use a political-economy welfare function and detailed data on the current WTO agricultural negotiations to assess the implications of this approach for welfare and for market access. We find that some previous rules of thumb greatly underestimate the impacts of such exceptions. Indeed, treating even a small number of tariff lines as sensitive and subjecting them to reduced cuts has a sharply adverse impact on welfare, and a smaller but still negative impact on market access." from authors' abstract

Suggested Citation

  • Jean, Sebastien & Laborde, David & Martin, Will, 2008. "Choosing sensitive agricultural products in trade negotiations:," IFPRI discussion papers 788, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:788
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    Cited by:

    1. Meysut Saygili & Ralph Peters & Christian Knebel, 2018. "African Continental Free Trade Area: Challenges and Opportunities of Tariff Reductions," UNCTAD Blue Series Papers 82, United Nations Conference on Trade and Development.
    2. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round," Issue briefs 56, International Food Policy Research Institute (IFPRI).
    3. Mathilde Douillet, 2011. "What are the agricultural exports growth perspectives offered to sub-Saharan countries by current trade negotiations?," EcoMod2011 3116, EcoMod.
    4. Cyrille Schwellnus & Jens Matthias Arnold, 2008. "Do Corporate Taxes Reduce Productivity and Investment at the Firm Level?: Cross-Country Evidence from the Amadeus Dataset," OECD Economics Department Working Papers 641, OECD Publishing.
    5. Bouet, Antoine & Laborde, David, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-22, August.
    6. Bosello, F. & Eboli, F. & Parrado, R., 2011. "Climate change impacts in the Mediterranean: a CGE analysis," Conference papers 332115, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Bouet, Antoine & Laborde Debucquet, David, 2010. "Eight years of Doha trade talks," IFPRI discussion papers 997, International Food Policy Research Institute (IFPRI).
    8. Bouët, Antoine & Laborde Debucquet, David & Dienesch, Elisa & Elliot, Kimberly, 2010. "The costs and benefits of duty-free, quota-free market access for poor countries," IFPRI discussion papers 990, International Food Policy Research Institute (IFPRI).
    9. Bouët, Antoine & Laborde Debucquet, David, 2017. "Assessing the potential cost of a failed Doha Round:," IFPRI book chapters, in: Bouët, Antoine & Laborde Debucquet, David (ed.), Agriculture, development, and the global trading system: 2000– 2015, chapter 6, International Food Policy Research Institute (IFPRI).
    10. Minor, Peter & Mureverwi, Brian, 2013. "A Household Level Analysis of African Trade Liberalization: The Case of Mozambique," Conference papers 332308, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Will Martin & Aaditya Mattoo, 2010. "The Doha Development Agenda: What's on the table?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(1), pages 81-107.
    12. Antoine Berthou & Lionel Fontagné, 2008. "The Euro Effects on the Firm and Product-Level Trade Margins: Evidence from France," Working Papers 2008-21, CEPII research center.
    13. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round:," Issue briefs 56, International Food Policy Research Institute (IFPRI).
    14. Karingi, Stephen & Mevel, Simon, 2012. "Deepening Regional Integration in Africa: A Computable General Equilibrium Assessment of the Establishment of a Continental Free Trade Area followed by a Continental Customs Union," Conference papers 332288, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Antoine Bouet, 2010. "Assessing the potential cost of a failed Doha round," Larefi Working Papers 201001, Larefi, Université Bordeaux 4.
    16. Chao, Chi-Chur & Yu, Eden S.H. & Yu, Wusheng, 2009. "Government Budget, Public-Sector Wages, and Corporate Taxes in a Small Open Economy," Conference papers 331917, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Antoine Bouet & David Laborde, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," Larefi Working Papers 201003, Larefi, Université Bordeaux 4.
    18. Habtamu Shiferaw Amogne & Taiji Hagiwara, 2021. "Impact of alternative regional trade arrangements on the Ethiopian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-26, December.

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    More about this item

    Keywords

    Agricultural trade; Efficiency; Trade negotiations; Market access; Sensitive products; tariffs; WTO; Globalization; trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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