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Tariff Bindings, Unused Protection and Agricultural Trade Liberalisation

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  • Peter Walkenhorst
  • Nora Dihel

Abstract

Prior quantitative assessments of the effects of agricultural trade liberalisation have assumed that negotiated reductions in bound tariffs translate into corresponding cuts in applied tariff rates. This approach, however, overestimates the actual reduction in applied tariffs and, hence, the benefits of trade liberalisation, since applied rates are often much lower than the tariffs bound in Uruguay Round schedules. This paper uses data on applied and bound tariffs and the GTAP-CGE model to quantify the magnitude of the resulting bias. The findings suggest that the distortion of estimates is particularly pronounced for modest tariff cuts, as well as for countries where the differences between bound and applied rates are substantial. Hence, quantitative policy analysts who aim to inform decision makers on the likely impacts of negotiated tariff cuts should consider the relationship between bound and applied tariff rates in their assessments in order to avoid mistaken advice...

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File URL: http://dx.doi.org/10.1787/eco_studies-v2003-art6-en
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Bibliographic Info

Article provided by OECD Publishing in its journal OECD Economic Studies.

Volume (Year): 2003 (2003)
Issue (Month): 1 ()
Pages: 231-249

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Handle: RePEc:oec:ecokaa:5lmqcr2jgw22

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Cited by:
  1. Lips, Markus, 2004. "The Cap Mid Term Review And The Wto Doha Round; Analyses For The Netherlands, Eu And Accession Countries," Report Series, Agricultural Economics Research Institute 29092, Agricultural Economics Research Institute.
  2. Oyewumi, Olubukola Ayodeju, 2005. "Modeling tariff rate quotas in the South African livestock industry," Master's Degree Theses, University of the Free State, Department of Agricultural Economics 28064, University of the Free State, Department of Agricultural Economics.
  3. Achterbosch, Thom J. & ben Hammouda, H. & Osakwe, Patrick N. & van Tongeren, Frank W., 2004. "Trade Liberalisation Under The Doha Development Agenda; Options And Consequences For Africa," Report Series, Agricultural Economics Research Institute 29104, Agricultural Economics Research Institute.
  4. Davide Sala & Philipp J. H. Schröder & Erdal Yalcin, 2010. "Market Access Through Bound Tariffs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(s1), pages 272-289, 07.
  5. Martina Brockmeier & Janine Pelikan, 2006. "A Portfolio Theory of International Capital Flows," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp125, IIIS.
  6. Mohamed Hedi Bchir & Sébastien Jean & David Laborde, 2006. "Binding Overhang and Tariff-Cutting Formulas," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 142(2), pages 207-232, July.
  7. Brockmeier, Martina & Pelikan, Janine, 2006. "Agricultural Market Access: A Moving Target in the WTO Negotiations?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia, International Association of Agricultural Economists 25428, International Association of Agricultural Economists.
  8. Pascal Ghazalian & Ryan Cardwell, 2010. "Did the Uruguay Round Agreement on Agriculture Affect Trade Flows? An Empirical Investigation for Meat Commodities," International Advances in Economic Research, Springer, Springer, vol. 16(4), pages 331-344, November.
  9. Oyewumi, Olubukola Ayodeju & Jooste, Andre & Britz, Wolfgang & van Schalkwyk, Herman D., 2007. "Tariff and Tariff Rate Quota Liberalization in the South African Livestock Industry: Approaches to Welfare Measurement," Agrekon, Agricultural Economics Association of South Africa (AEASA), Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
  10. Yvan Decreux & Lionel Fontagné, 2006. "A Quantitative Assessment of the Outcome of the Doha Development Agenda," Working Papers 2006-10, CEPII research center.

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