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Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?

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  • Antimiani, Alessandro

    ()

  • Conforti, Piero

    ()

  • Salvatici, Luca

    ()

Abstract

This paper provides an assessment of the existing preferences on the products currently exported in a few key developed countries’ markets: EU, Japan and US. The analysis is undertaken drawing on the trade preferences database provided by the most recent version (release 6) of the GTAP database. This includes a presentation of the structure of tariff regimes in these key developed countries and identification of countries and sectors that are most reliant on tariff preferences. The paper computes theoretically consistent protection indexes using a comparative static applied general equilibrium model (Global Trade Analysis Project – GTAP) featuring imperfect competition. We construct bilateral indicators of protection focused on the applied tariffs faced by the exports of each country, using an index of trade policy restrictiveness, the Mercantilistic Trade Restrictiveness Index (MTRI), as the tariff aggregator. Our results provide a picture which is quite different from the one yielded by traditional indexes, such as the trade-weighted tariff average, or market access measures based on bound tariffs.

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Bibliographic Info

Paper provided by University of Molise, Dept. EGSeI in its series Economics & Statistics Discussion Papers with number esdp07036.

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Length: 26 pages
Date of creation: 25 Apr 2007
Date of revision:
Handle: RePEc:mol:ecsdps:esdp07036

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Keywords: Commercial Policy; Protection; Computable General Equilibrium Models; Agriculture in International Trade.;

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References

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  1. Antoine Bouët & Jean-Christophe Bureau & Yvan Decreux & Sébastien Jean, 2004. "Multilateral Agricultural Trade Liberalization: The Contrasting Fortunes of Developing Countries in the Doha Round," Working Papers 2004-18, CEPII research center.
  2. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  3. Francois, Joseph, 1998. "Scale Economies and Imperfect Competition in the GTAP Model," GTAP Technical Papers 317, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  4. Anderson, J.E., 1998. "The Mercantilist Index of Trade Policy," Papers 98/13, College Dublin, Department of Political Economy-.
  5. Manchin, Miriam, 2005. "Preference utilization and tariff reduction in European Union imports from African, Caribbean, and Pacific countries," Policy Research Working Paper Series 3688, The World Bank.
  6. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
  7. Jean-Christophe Bureau & Sébastien Jean & Alan Matthews, 2005. "The Consequences of Agricultural Trade Liberalization for Developing Countries: Distinguishing Between Genuine Benefits and False Hopes," Working Papers 2005-13, CEPII research center.
  8. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573.
  9. Candau, Fabien & Jean, Sebastien, 2005. "What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?," Working Papers 18863, TRADEAG - Agricultural Trade Agreements.
  10. Antimiani, Alessandro & Salvatici, Luca, 2007. "EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework," Economics & Statistics Discussion Papers esdp07034, University of Molise, Dept. EGSeI.
  11. Bach, Christian F. & Martin, Will, 2001. "Would the right tariff aggregator for policy analysis please stand up?," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 621-635, August.
  12. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, December.
  13. C. F. Bach & S. E. Frandsen & H. G. Jensen, 2000. "Agricultural and Economy-Wide Effects of European Enlargement: Modelling the Common Agricultural Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 162-180.
  14. Don P. Clark & Donald Bruce, 2006. "On the Incidence of US Tariffs," The World Economy, Wiley Blackwell, vol. 29(2), pages 123-135, 02.
  15. Alan Matthews & Jean-Christophe Bureau, 2005. "EU Agricultural Policy: What Developing Countries Need to Know," The Institute for International Integration Studies Discussion Paper Series iiisdp91, IIIS.
  16. Hoekman, Bernard & Ozden, Caglar, 2005. "Trade preferences and differential treatment of developing countries : a selective survey," Policy Research Working Paper Series 3566, The World Bank.
  17. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 445-470, December.
  18. Antoine Bouët & Lionel Fontagné & Sébastien Jean, 2005. "Is Erosion of Tariff Preferences a Serious Concern?," Working Papers 2005-14, CEPII research center.
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Cited by:
  1. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.

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