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Implications of the Doha market access proposals for developing countries

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  • LABORDE, DAVID
  • MARTIN, WILL
  • VAN DER MENSBRUGGHE, DOMINIQUE

Abstract

This paper uses detailed data on bound and applied tariffs to assess the consequences of the World Trade Organization’s December 2008 Modalities for tariffs levied and faced by developing countries, and the welfare implications of these reforms. The authors find that the tiered formula for agriculture would halve tariffs in industrial countries and lower them more modestly in developing countries. In non-agriculture, the formulas would reduce the tariff peaks facing developing countries and cut average industrial country tariffs by more than a third. The authors use a political-economy framework to assess the implications of flexibilities for the size of the tariff cuts and find they are likely to substantially reduce the outcome. However, despite the flexibilities, there are likely to be worthwhile gains, with applied tariffs facing developing countries cut by about 20 percent in agriculture and 27 percent in non-agriculture, and sizeable cuts in tariffs facing industrial countries. The welfare impacts of reform are evaluated using a new approach to aggregation that improves on the traditional, flawed approach of weighted-average tariffs. This substantially increases the estimated benefits of an agreement along the lines of these modalities, with estimated global income gains of up to $160 billion per year from market access reform.

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Bibliographic Info

Article provided by Cambridge University Press in its journal World Trade Review.

Volume (Year): 11 (2012)
Issue (Month): 01 (January)
Pages: 1-25

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Handle: RePEc:cup:wotrrv:v:11:y:2012:i:01:p:1-25_00

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References

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  1. Antoine Bouet & David Laborde, 2010. "Eight years of Doha trade talks : where do we stand," Working Papers hal-00637589, HAL.
  2. Kym Anderson & Will Martin, 2005. "Agricultural Trade Reform and the Doha Development Agenda," Centre for International Economic Studies Working Papers 2005-17, University of Adelaide, Centre for International Economic Studies.
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Cited by:
  1. Hoekman, Bernard, 2011. "The WTO and the Doha Round: Walking on Two Legs," World Bank - Economic Premise, The World Bank, issue 68, pages 1-6, October.
  2. Bernard Hoekman, 2013. "Sustaining Multilateral Trade Cooperation in a Multipolar World Economy," RSCAS Working Papers 2013/86, European University Institute.
  3. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2012. "Estimating Effects of Price-distorting Policies Using Alternative Distortions Databases," Departmental Working Papers 2012-09, The Australian National University, Arndt-Corden Department of Economics.
  4. Matthews, Alan, 2013. "DOHA Negotiations on Agriculture and Future of the WTO Multilateral Trade System," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160370, European Association of Agricultural Economists.

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