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Choosing Sensitive Agricultural Products in Trade Negotiations

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Author Info
Sebastien Jean
David Laborde
Will Martin

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Abstract

The formula approach used in many trade negotiations involves large formula cuts in high tariffs, with flexibilities that allow smaller cuts for selected products. Difficulties in evaluating the effects of these exceptions can create major problems. We use a politicaleconomy welfare function and detailed data on the current WTO agricultural negotiations to assess the implications of this approach for welfare and for market access. We find that some previous rules of thumb greatly underestimate the impacts of such exceptions. Indeed, treating even a small number of tariff lines as sensitive and subjecting them to reduced cuts has a sharply adverse impact on welfare, and a smaller but still negative impact on market access.

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Paper provided by CEPII research center in its series Working Papers with number 2008-18.

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Date of creation: Sep 2008
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Handle: RePEc:cii:cepidt:2008-18

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Related research
Keywords: Agricultural trade; trade negotiations; market access; sensitive products; WTO;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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References listed on IDEAS
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.:
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  15. Sebastien Jean & David Laborde & Will Martin, 2005. "Consequences of Alternative Formulas for Agricultural Tariff Cuts," Working Papers 2005-15, CEPII research center. [Downloadable!]
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Cited by:
(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. Martin, Will & Mattoo, Aaditya, 2008. "The Doha development agenda : what's on the table?," Policy Research Working Paper Series 4672, The World Bank. [Downloadable!]
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