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From Bound Duties to Actual Protection: Industrial Liberalisation in the Doha Round

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Author Info
Hedi Bchir
Lionel Fontagne
Sebastien Jean

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Abstract

This study proposes a CGE assessment of multilateral liberalisation of non-agricultural market access. Scenarios considered include the so-called Girard proposal (with alternative choices for the involved coefficient), the removal of tariff peaks and complete liberalisation. This study is the first one to take duly into account the difference between bound and applied tariffs, while accounting for all enforced preferential trade arrangements and computing tariff cuts at the detailed product level (HS-6 classification). While non-agricultural market access liberalisation is found to be welfare-enhancing at the world level, cross-country distributive impacts prove significant. A soft liberalisation would not lower significantly applied duties in developing countries, due to their significant binding overhang. In contrast, a deep liberalisation would entail fierce price-competition between developing countries, largely specialised on similar sectors and on the same quality range.

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Paper provided by CEPII research center in its series Working Papers with number 2005-12.

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Date of creation: Jul 2005
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Handle: RePEc:cii:cepidt:2005-12

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Related research
Keywords: Doha development agenda applied tariffs preferential trade agreements binding overhang computable general equilibrium model

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Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hoekman, Bernanrd & Ng, Francis & Olarreaga, Marcelo, 2003. "Reducing agrcultural tariffs versus domestic support : what's more important for developing countries?," Policy Research Working Paper Series 2918, The World Bank. [Downloadable!]
  2. Mohamed Hedi Bchir & Sébastien Jean & David Laborde, 2006. "Binding Overhang and Tariff-Cutting Formulas," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 207-232, July. [Downloadable!] (restricted)
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  3. Lionel Fontagne & Thierry Mayer & Soledad Zignago, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," Working Papers 2004-04, CEPII research center. [Downloadable!]
    Other versions:
  4. Lionel Fontagné & Michael Freudenberg, 1999. "Endogenous Symmetry of Shocks in a Monetary Union," Open Economies Review, Springer, vol. 10(3), pages 263-287, July. [Downloadable!] (restricted)
  5. Francois, Joseph & Martin, Will, 2003. "Formula Approaches for Market Access Negotiations," CEPR Discussion Papers 3720, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2002. "Eliminating Excessive Tariffs on Exports of Least Developed Countries," World Bank Economic Review, Oxford University Press, vol. 16(1), pages 1-21, June.
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  7. Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 646-677, May. [Downloadable!] (restricted)
  8. Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1997. "Quantifying the Uruguay Round," Economic Journal, Royal Economic Society, vol. 107(444), pages 1405-30, September. [Downloadable!] (restricted)
  9. Joseph Francois & Hans van Meijl & Frank van Tongeren, 2003. "Economic Implications of Trade Liberalization Under the Doha Round," Working Papers 2003-20, CEPII research center. [Downloadable!]
  10. Antoine Bouet & Yvan Decreux & Lionel Fontagne & Sebastien Jean & David Laborde, 2004. "A Consistent, Ad-Valorem Equivalent Measure of Applied Protection Across the World: The MAcMap-HS6 Database," Working Papers 2004-22, CEPII research center. [Downloadable!]
  11. Antoine Bouët & Jean-Christophe Bureau & Yvan Decreux & Sébastien Jean, 2005. "Multilateral Agricultural Trade Liberalisation: The Contrasting Fortunes of Developing Countries in the Doha Round," The World Economy, Blackwell Publishing, vol. 28(9), pages 1329-1354, 09. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jayatilleke S. Bandara, 2007. "The Effects of Agricultural Trade Liberalisation under the Doha Development Agenda with Special Reference to the Asia Pacific Region: A Brief Survey," Working Papers 3107, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada.. [Downloadable!]
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