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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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  • Bureau, Jean-Christophe
  • Salvatici, Luca

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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Bibliographic 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;

References

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  1. J Anderson & J.P. Neary, 1993. "A New Approach to Evaluating Trade Policy," CEP Discussion Papers dp0173, Centre for Economic Performance, LSE.
  2. 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.
  3. repec:agl:nearer:v:29:y:2000:i:1:p:70-80 is not listed on IDEAS
  4. Neary, J. P., 1997. "Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs, and Subsidies to High-Technology Industries," Papers 97/26, College Dublin, Department of Political Economy-.
  5. Luca Salvatici, 2001. "Trade Distortion Indexes and Applied General Equilibrium Models: The Case of the Common Agricoltural Policy," Working Papers 45, University of Rome La Sapienza, Department of Public Economics.
  6. Bach, Christian F. & Martin, Will, 2001. "Would the right tariff aggregator for policy analysis please stand up?," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 621-635, August.
  7. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service.
  8. J-C Bureau & L Fulponi & L Salvatici, 2000. "Comparing EU and US trade liberalisation under the Uruguay Round Agreement on Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(3), pages 259-280, September.
  9. Josling, Timothy E., 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.
  10. Bureau, Jean-Christophe & Tangermann, Stefan, 2000. "Tariff Rate Quotas In The Eu," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April.
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Cited by:
  1. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2005. "Agricultural Trade Liberalization: Assessing the Consequences for Developing Countries," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24628, European Association of Agricultural Economists.

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