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Trick or Treat? Development Opportunities and Challenges in the WTO Negotiations on Industrial Tariffs

Author

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  • Santiago Fernandez De Córdoba
  • Sam Laird
  • David Vanzetti

Abstract

Negotiations on industrial tariffs in the current WTO work programme have turned out to be surprisingly difficult. On the one hand, developing countries, particularly in Africa, are concerned about the potential negative effect on their industrial development of developed country efforts to push them into deep cuts in applied tariffs: after the disillusion of the Uruguay Round, promises of welfare gains seem unconvincing. On the other hand, a number of the more complex formula proposals for tariff‐cutting make it difficult for participants to evaluate what they have to do compared with what they hope to receive. The developing countries may achieve greater exports and welfare gains from the more ambitious proposals, but computations show that these also imply greater imports, lower tariff revenues, some labour market adjustments and reduced output in some politically sensitive sectors. Some way of assisting the developing countries in coping with these adjustments is required to take advantage of the opportunities presented by the negotiations.

Suggested Citation

  • Santiago Fernandez De Córdoba & Sam Laird & David Vanzetti, 2005. "Trick or Treat? Development Opportunities and Challenges in the WTO Negotiations on Industrial Tariffs," The World Economy, Wiley Blackwell, vol. 28(10), pages 1375-1400, October.
    • Handle: RePEc:bla:worlde:v:28:y:2005:i:10:p:1375-1400
    DOI: 10.1111/j.1467-9701.2005.00740.x
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    References listed on IDEAS

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    Cited by:

    1. George Verikios & Kevin Hanslow, 2009. "The Long-run Effects of Structural Change and the Treatment of International Capital Accumulation, Mobility and Ownership," Global Economic Review, Taylor & Francis Journals, vol. 38(3), pages 229-250.
    2. Malcolm Bsosworth & Leanne Holmes, 2005. "The WTO Doha Agenda—Progress and Issues for Asia Pacific Developing Economies," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 19(2), pages 55-74, November.
    3. Sam LAIRD, 2007. "Aid for Trade: Cool Aid or Kool-Aid?," G-24 Discussion Papers 48, United Nations Conference on Trade and Development.
    4. Yilmaz Akyuz, 2005. "The WTO Negotiations on Industrial Tariffs: What is at Stake for Developing Countries?," Working Papers 2005/8, Turkish Economic Association.
    5. Yilmaz Akyüz, 2005. "The WTO Negotiations on Industrial Tariffs : What is at Stake for Developing Countries?," Trade Working Papers 22080, East Asian Bureau of Economic Research.
    6. Ben Hammouda, Hakim & Karingi, Stephen & Njuguna, Angelica & Sadni Jallab, Mustapha, 2006. "Diversification: towards a new paradigm for Africa’s development," MPRA Paper 13359, University Library of Munich, Germany.

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