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WTO Negotiations on Market Access in Agriculture: A Comparison of Alternative Tariff Cut Scenarios for the EU and the US

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Author Info
Bureau, Jean-Christophe
Salvatici, Luca

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Abstract

This paper provides a summary measure of the possible new commitments in the area of market access undertaken by the European Union and the United States, using the Trade Restrictiveness Index (TRI) as the tariff aggregator. Indicators such as the TRI, based on welfare theory, integrate economic behavioural assumptions within a balance of trade framework. We take the 2000 bound tariffs as the starting point and attempt to assess how much liberalisation in agriculture could be achieved in the European Union and the United States as a result of the present negotiations. We compute the index for agricultural commodity aggregates assuming a specific (Constant Elasticity of Substitution) functional form for import demand. The present levels of the TRI under the actual commitments of the Uruguay Round are computed and compared with three hypothetical cases: a repetition of the same set of commitments of the Uruguay Round, a uniform 36 percent reduction of each tariff, an harmonization formula based on the "sliding scale" scheme. This makes it possible to infer how reducing tariff dispersion would help improve market access in future trade agreements.

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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24883.

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Date of creation: 2002
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Handle: RePEc:ags:eaae02:24883

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Related research
Keywords: international agricultural trade; agricultural price; income; policy analysis; International Relations/Trade;

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  1. repec:agl:nearer:v:29:y:2000:i:1:p:70-80 is not listed on IDEAS
  2. Josling, Tim, 1990. "Of Models and Measures: Some Thoughts on the Use and Abuse of Policy Indicators," 1990: The Environment, Government Policies, and International Trade Meeting, December 1990, San Diego, CA 50880, International Agricultural Trade Research Consortium. [Downloadable!]
  3. Anderson, James E & Neary, J Peter, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Blackwell Publishing, vol. 63(1), pages 107-25, January. [Downloadable!] (restricted)
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  4. Neary, J Peter, 1997. "Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs and Subsidies to HIgh-Technology Industries," CEPR Discussion Papers 1740, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Gibson, Paul & Wainio, John & Whitley, Daniel & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  6. Luca Salvatici, 2001. "Trade Distortion Indexes And Multiregional Age Models: The Case Of The Common Agricultural Policy," Working Papers 45, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  7. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank. [Downloadable!]
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