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The WTO Negotiations on Industrial Tariffs : What is at Stake for Developing Countries?

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  • Yilmaz Akyüz

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    Abstract

    This paper focuses on the implications of the negotiations on industrial tariffs for longer term industrialization in developing countries. It begins with a brief overview of the NAMA framework that is followed by a review of the historical experience of todays advanced countries regarding the use of tariffs in the course of their industrialization, and compares and contrasts it with the actual situation prevailing in developing countries today and the proposals put forward. Then it discusses the sectoral pattern and evolution of tariffs that may be needed in the course of industrial development in comparison with the constraints that would result from the proposals made by developed countries, and advances a simple alternative formula that can help reconcile policy flexibility with multilateral discipline. This is followed by an evaluation of various estimates of benefits of tariff cuts to developing countries. There the paper turns to the question of reciprocity from a broad developmental perspective. It is concluded with a brief summary of the key points on how the negotiations could accommodate both the immediate needs and longer-term interests of developing countries.

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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22080.

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    Date of creation: Jan 2005
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    Handle: RePEc:eab:tradew:22080

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    Keywords: tariffs; industrialization;

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    1. Douglas A. Irwin, 2001. "Tariffs and Growth in Late Nineteenth Century America," The World Economy, Wiley Blackwell, vol. 24(1), pages 15-30, 01.
    2. Michael A. Clemens & Jeffrey G. Williamson, 2002. "Closed Jaguar, Open Dragon: Comparing Tariffs in Latin America and Asia before World War II," NBER Working Papers 9401, National Bureau of Economic Research, Inc.
    3. Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720, April.
    4. Sebastian Edwards, 1991. "Trade Orientation, Distortions and Growth in Developing Countries," NBER Working Papers 3716, National Bureau of Economic Research, Inc.
    5. Irwin, Douglas A., 2003. "New Estimates of the Average Tariff of the United States, 1790 1820," The Journal of Economic History, Cambridge University Press, vol. 63(02), pages 506-513, June.
    6. Michael A. Clemens & Jeffrey G. Williamson, 2001. "A Tariff-Growth Paradox? Protection's Impact the World Around 1875-1997," NBER Working Papers 8459, National Bureau of Economic Research, Inc.
    7. David N. DeJong & Marla Ripoll, 2006. "Tariffs and Growth: An Empirical Exploration of Contingent Relationships," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 625-640, November.
    8. Douglas A. Irwin, 2002. "Interpreting the Tariff-Growth Correlation of the Late Nineteenth Century," NBER Working Papers 8739, National Bureau of Economic Research, Inc.
    9. Santiago Fernandez de Córdoba & Sam Laird & David Vanzetti, 2005. "Trick or Treat? Development Opportunities and Challenges in the WTO Negotiations on Industrial Tariffs," The World Economy, Wiley Blackwell, vol. 28(10), pages 1375-1400, October.
    10. Jeffrey G. Williamson, 2003. "Was It Stolper-Samuelson, Infant Industry or Something Else? World Trade Tariffs 1789-1938," NBER Working Papers 9656, National Bureau of Economic Research, Inc.
    11. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, EconWPA.
    12. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
    13. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, December.
    14. Douglas A. Irwin, 2002. "Did Import Substitution Promote Growth in the Late Nineteenth Century?," NBER Working Papers 8751, National Bureau of Economic Research, Inc.
    15. Pradhan, Jaya Prakash, 2003. "Rise of service sector outward foreign direct investment from Indian economy: trends, patterns, and determinants," MPRA Paper 17078, University Library of Munich, Germany.
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    Cited by:
    1. Shafaeddin, Mehdi, 2009. "Impact of Selectivity and Neutrality of trade Policy Incentives on Industrialization of Developing Countries; Implications for NAMA Negotiations," MPRA Paper 15037, University Library of Munich, Germany.
    2. Shafaeddin, Mehdi, 2006. "Is The Industrial Policy Relevant In The 21st Century?," MPRA Paper 6643, University Library of Munich, Germany.
    3. Yýlmaz Akyüz, . "Global Rules and Markets: Constraints over Policy Autonomy in Developing Countries," Working Papers 2007/5, Turkish Economic Association.
    4. Shafaeddin, Mehdi, 2007. "Oil and Challenges of Trade Policy Making In Sudan in a Globalizing Arena," MPRA Paper 6720, University Library of Munich, Germany.
    5. Shafaeddin, Mehdi, 2009. "The Impact of the Global Economic Crisis on Industrialization of Least Developed Countries," MPRA Paper 18788, University Library of Munich, Germany.
    6. Nagesh Kumar & Kevin P. Gallagher, 2007. "Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations," Trade Working Papers 22111, East Asian Bureau of Economic Research.

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