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Sensitive Products: Selection and Implications for Agricultural Trade Negotiations

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Author Info

  • Jean, Sebastien
  • Laborde, David
  • Martin, William J.

Abstract

The current negotiating framework for WTO negotiations on agriculture includes flexibilities for "sensitive" products to be chosen by the importer. Without knowing which products their partners are likely to select, WTO members cannot assess the implications of an agreement for their market access opportunities. In this paper, we begin by specifying a Grossman-Helpman type political-economy welfare function, and use this to determine which products are likely to be selected as sensitive products. Assuming these products are subjected to smaller reduction in protection, we find that allowing even 2 percent of tariff lines to be treated as sensitive can greatly reduce the impact of an agreement on market access. This problem is, in part, a consequence of using a percentage of tariff lines as the constraint on the use of sensitive products. If the constraint on the products to be classified as sensitive takes more directly into account the interests of the exporter - being specified, for example, as a share of imports - then the adverse impacts on market access opportunities can be greatly reduced.

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File URL: http://purl.umn.edu/18860
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Bibliographic Info

Paper provided by TRADEAG - Agricultural Trade Agreements in its series Working Papers with number 18860.

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Date of creation: 2005
Date of revision:
Handle: RePEc:ags:tragwp:18860

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Web page: http://tradeag.vitamib.com/

Related research

Keywords: International Relations/Trade;

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Cited by:
  1. John Gilbert, 2008. "Agricultural Trade Reform and Poverty in the Asia-Pacific: A Survey and Some New Results," Working Papers 2008-01, Utah State University, Department of Economics, revised 19 Dec 2008.
  2. Cadot, Olivier & Gallezot, Jacques & Suwa Eisenmann, Akiko, 2009. "EU Trade Barriers in the Agri-food Sector: When Protection Breeds Dependence," CEPR Discussion Papers 7219, C.E.P.R. Discussion Papers.
  3. Ramos, Maria Priscila, 2007. "Politique Commerciale, Qualité et Environnement: une Application aux Négociations Commerciales entre l’Union Européenne et le Mercosur," MPRA Paper 12640, University Library of Munich, Germany.
  4. Jales, Mario & Josling, Timothy E. & Nassar, Andre Meloni & Tutwiler, M. Ann, 2005. "Market Access," Trade Policy Issues Papers 14570, International Agricultural Trade Research Consortium.
  5. John Gilbert, 2008. "Agricultural trade reform and poverty in the Asia-Pacific region: a survey and some new results," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 15(1), pages 1-34, June.

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