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Choosing Sensitive Agricultural Products in Trade Negotiations

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  • Sébastien Jean
  • David Laborde
  • Will Martin

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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Bibliographic Info

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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Keywords: Agricultural trade; Trade negotiations; Market access; Sensitive products; WTO;

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References

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Citations

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Cited by:
  1. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round:," Issue briefs, International Food Policy Research Institute (IFPRI) 56, International Food Policy Research Institute (IFPRI).
  2. Antoine Bouet, 2010. "Assessing the potential cost of a failed Doha round," Working Papers, HAL hal-00637583, HAL.
  3. Antoine Bouet & David Laborde, 2010. "Eight years of Doha trade talks : where do we stand," Working Papers, HAL hal-00637589, HAL.
  4. Bouët, Antoine & Laborde Debucquet, David & Dienesch, Elisa & Elliot, Kimberly, 2010. "The costs and benefits of duty-free, quota-free market access for poor countries," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 990, International Food Policy Research Institute (IFPRI).
  5. Will Martin & Aaditya Mattoo, 2010. "The Doha Development Agenda: What's on the table?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 19(1), pages 81-107.
  6. repec:laf:wpaper:201003 is not listed on IDEAS
  7. Bouet, Antoine & Laborde Debucquet, David, 2010. "Eight years of Doha trade talks," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 997, International Food Policy Research Institute (IFPRI).
  8. repec:laf:wpaper:201001 is not listed on IDEAS

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