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Agricultural trade restrictiveness in the European Union and the United States

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  • Jean-Christophe Bureau
  • Luca Salvatici

Abstract

The paper provides a summary measure of the Uruguay Round tariff reduction commitments in the European Union and the United States, using the Mercantilistic Trade Restrictiveness Index (MTRI) as the tariff aggregator. We compute the index for agricultural commodity aggregates assuming a specific (Constant Elasticity of Substitution) functional form for import demand. The levels of the MTRI under the actual commitments of the Uruguay Round are computed and compared with two hypothetical cases, a deeper cut in higher tariffs and a uniform reduction of each tariff, both leading to the same average reduction as in the Uruguay Round. This makes it possible to infer how reducing tariff dispersion will help improve market access in future trade agreements, and provides some guidelines for aggregating detailed tariffs in trade models.

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Bibliographic Info

Paper provided by INRA, Economie Publique in its series Working Papers with number 2004/03.

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Date of creation: 10 Sep 2004
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Handle: RePEc:apu:wpaper:2004/03

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Keywords: International agricultural trade; Protection; Tariff; Tariff factors;

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References

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  1. Laird, Samuel & Yeats, Alexander, 1988. "A Note on the Aggregation Bias in Current Procedures for the Measurement of Trade Barriers," Bulletin of Economic Research, Wiley Blackwell, vol. 40(2), pages 133-43, April.
  2. Anderson, James E. & Neary, J. Peter, 1992. "A new approach to evaluating trade policy," Policy Research Working Paper Series 1022, The World Bank.
  3. 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.
  4. Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102.
  5. 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.
  6. 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.
  7. Oral Capps & H. Alan Love, 2002. "Econometric Considerations in the Use of Electronic Scanner Data to Conduct Consumer Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 807-816.
  8. Beghin, John C. & Nureau, Jean-Christophe & Park, Sung Joon, 2002. "Food Security and Agricultural Protection in South Korea," 2002 Conference (46th), February 13-15, 2002, Canberra 125057, Australian Agricultural and Resource Economics Society.
  9. Lewbel, Arthur, 1996. "Aggregation without Separability: A Generalized Composite Commodity Theorem," American Economic Review, American Economic Association, vol. 86(3), pages 524-43, June.
  10. Jean-Christophe Bureau & Luca Salvatici, 2003. "WTO Negociations on Market Access in Agriculture: a Comparison of alternative Tariff Cut Proposals for the EU and the US," Working Papers 2003/03, INRA, Economie Publique.
  11. Lloyd, P J, 1975. "Substitution Effects and Biases in Nontrue Price Indices," American Economic Review, American Economic Association, vol. 65(3), pages 301-13, June.
  12. 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.
  13. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
  14. Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
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Citations

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Cited by:
  1. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  2. Matthews, Alan & Gallezot, Jacques, 2006. "The role of EBA in the political economy of CAP reform," Working Papers 18864, TRADEAG - Agricultural Trade Agreements.
  3. Antimiani, Alessandro & Salvatici, Luca, 2005. "EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework," Working Papers 18856, TRADEAG - Agricultural Trade Agreements.
  4. Conforti, Piero & Ford, Deep & Hallam, David & Rapsomanikis, George & Salvatici, Luca, 2007. "The European Union preferential trade with developing countries. Total trade restrictiveness and the case of sugar," Economics & Statistics Discussion Papers esdp07037, University of Molise, Dept. EGSeI.

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