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The impact of comprehensive tariff reductions in multilateral trade: further results from computable general equilibrium simulations


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  • Shamim Shakur

    (Massey University)

  • Allan N Rae

    (Massey University)

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    Despite their welfare-improving properties, negotiations on tariff reductions remain a highly contentious issue. Using the GTAP general equilibrium approach, this paper identifies potential winners and losers from partial removal of remaining tariffs in disaggregated sectors. By considering alternative approaches to further liberalising trade in three broadly defined sectors (agriculture, textiles and manufacturing), the paper establishes empirically the clear superiority of a comprehensive trade reform package which encompasses all sectors and geographic regions. Trade negotiators at the currently deadlocked Doha Round should take note of this result as a possible means of breaking the impasse.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 32 (2012)
    Issue (Month): 1 ()
    Pages: 182-189

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    Handle: RePEc:ebl:ecbull:eb-11-00819

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    Keywords: tariffs; CGE model; Doha Round;

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    1. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round:," Issue briefs, International Food Policy Research Institute (IFPRI) 56, International Food Policy Research Institute (IFPRI).
    2. W. Jill Harrison & J. Mark Horridge & K.R. Pearson, 1999. "Decomposing Simulation Results with Respect to Exogenous Shocks," Centre of Policy Studies/IMPACT Centre Working Papers ip-73, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 9(2), pages 83-127, May.
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