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Sensitive Products: Selection and Implications for Agricultural Trade Negotiations

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  • 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.

Suggested Citation

  • Jean, Sebastien & Laborde, David & Martin, William J., 2005. "Sensitive Products: Selection and Implications for Agricultural Trade Negotiations," Working Papers 18860, TRADEAG - Agricultural Trade Agreements.
    • Handle: RePEc:ags:tragwp:18860
    DOI: 10.22004/ag.econ.18860
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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 200801, Utah State University, Department of Economics and Finance.
    2. Sébastien Jean & David Laborde & Will Martin, 2005. "Consequences of Alternative Formulas for Agricultural Tariff Cuts," Working Papers 2005-15, CEPII research center.
    3. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & Mihaly Himics & Robert M'barek, 2016. "Cumulative economic impact of future trade agreements on EU agriculture," JRC Research Reports JRC103602, Joint Research Centre.
    4. 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.
    5. Emanuele Ferrari & Thomas Chatzopoulos & Ignacio Perez Dominguez & Pierre Boulanger & Kirsten Boysen-Urban & Mihaly Himics & Robert M’barek, 2021. "Cumulative economic impact of trade agreements on EU agriculture: 2021 update," JRC Research Reports JRC123037, Joint Research Centre.
    6. Jensen, Hans Grinsted & Baltzer, Kenneth & Babula, Ronald A. & Frandsen, Søren E., 2007. "The Economy-Wide Impact of Multilateral NAMA Traiff Reductions:A Global and Danish Perspective," Conference papers 331641, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Boulanger, Pierre & Dillen, Koen & Dudu, Hasan & Ferrari, Emanuele & Himics, Mihaly & M'Barek, Robert & Philippidis, George, 2017. "Cumulative economic assessment of future trade agreements on the EU agriculture," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261115, European Association of Agricultural Economists.
    8. Jales, Mario & Josling, Timothy E. & Nassar, Andre Meloni & Tutwiler, M. Ann, 2005. "Market Access," Trade Issues Papers 14570, International Agricultural Trade Research Consortium.
    9. Strutt, Anna, 2008. "Dynamic Analysis of a BIMSTEC-Japan Free Trade Area," Conference papers 331715, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. 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.
    11. Ferrari, Emanuele & Chatzopoulos, Thomas & Domínguez, Ignacio Pérez & Boulanger, Pierre & Boysen-Urban, Kirsten & Himics, Mihaly & M'barek, Robert & Redondo, Marina Pinilla, 2021. "Economic Impact of Free Trade Agreements on the EU Agri-Food Sector," 2021 Conference, August 17-31, 2021, Virtual 315030, International Association of Agricultural Economists.
    12. Suwa-Eisenmann, Akiko & Cadot, Olivier & Gallezot, Jacques, 2009. "EU Trade Barriers in the Agri-food Sector: When Protection Breeds Dependence," CEPR Discussion Papers 7219, C.E.P.R. Discussion Papers.

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