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The Impact of Trade Preferences on Multilateral Tariff Cuts: Evidence for Japan

Author

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  • Tobias Ketterer
  • Daniel M. Bernhofen
  • Chris Milner

Abstract

Opposing theoretical predictions on the effects of trade preferences on multilateral tariff cuts point to the need for empirical analysis to determine whether preferential trade agreements promote or hinder multilateral trade liberalization. This paper examines the impact of Japan’s trade preferences on its multi-lateral tariff reductions. Using detailed product level data, we find that Japan’s Generalized System of Preferences (GSP) acted as a stumbling block for the country’s external tariff liberalization during the Uruguay Round of multi-lateral trade negotiations.

Suggested Citation

  • Tobias Ketterer & Daniel M. Bernhofen & Chris Milner, 2014. "The Impact of Trade Preferences on Multilateral Tariff Cuts: Evidence for Japan," CESifo Working Paper Series 4777, CESifo.
    • Handle: RePEc:ces:ceswps:_4777
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    12. Ketterer, Tobias D. & Bernhofen, Daniel & Milner, Chris, 2014. "Preferences, rent destruction and multilateral liberalization: The building block effect of CUSFTA," Journal of International Economics, Elsevier, vol. 92(1), pages 63-77.
    13. Baybars Karacaovali & Nuno Limão, 2018. "The clash of liberalizations: Preferential vs. multilateral trade liberalization in the European Union," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 14, pages 373-401, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Postigo, Antonio, 2022. "Utilization of GSP schemes as a political and economic determinant of the utilization of North-South FTAs," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(5), pages 1420-1447.
    2. Tovar, Patricia, 2019. "Preferential and multilateral liberalization: Evidence from Latin America’s use of tariffs, antidumping and safeguards," Journal of Development Economics, Elsevier, vol. 141(C).
    3. Emanuel Ornelas, 2016. "Special and Differential Treatment for Developing Countries," CESifo Working Paper Series 5823, CESifo.
    4. Chad P. Bown & Patricia Tovar, 2016. "Preferential Liberalization, Antidumping, and Safeguards: Stumbling Block Evidence from MERCOSUR," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 262-294, November.
    5. Соколовская Е.В., 2016. "Unilateral tariff cuts: a theory," Экономический вестник университета. Сборник научных трудов ученых и аспирантов, CyberLeninka;Государственное высшее учебное заведение «Переяслав-Хмельницкий государственный педагогический университет имени Григория Сковороды», issue 29-1, pages 268-274.
    6. Guan, Qing & An, Haizhong, 2017. "The exploration on the trade preferences of cooperation partners in four energy commodities’ international trade: Crude oil, coal, natural gas and photovoltaic," Applied Energy, Elsevier, vol. 203(C), pages 154-163.
    7. Tobias D. Ketterer, 2015. "EU Regionalism and External Tariff Protection: The Role of Initial Tariffs and the Heterogeneity of Preferential Market Access," Discussion Papers 2015-03, University of Nottingham, GEP.
    8. Nuno Limão, 2016. "Preferential Trade Agreements," NBER Working Papers 22138, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Japan's Generalized System of Preferences; Japan's Most Favoured Nation tariffs; Uruguay Round;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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