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Commercial Policy Uncertainty, the Expected Cost of Protection, and Market Access

Author

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  • Joseph F. Francois

    (Erasmus University Rotterdam and CEPR)

  • Will Martin

    (World Bank)

Abstract

Protection unconstrained by rules often varies substantially over time. Rules-based disciplines likeOECD industrial tariff bindings negotiated under GATT since 1947 and new Uruguay Roundbindings on agricultural and services trade and on developing country industrial tariffs, constrain thisvariability. We examine the theoretical effects of such constraints on the expected cost of protectionand offer a formalization of the concept of "market access," emphasizing both the first and secondmoments of the distribution of protection. As an illustration, we provide a stylized examination ofUruguay Round agricultural bindings.

Suggested Citation

  • Joseph F. Francois & Will Martin, 1998. "Commercial Policy Uncertainty, the Expected Cost of Protection, and Market Access," Tinbergen Institute Discussion Papers 98-059/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19980059
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    Cited by:

    1. Mattoo, Aaditya & Olarreaga, Marcelo, 2000. "Should credit be given for autonomous liberalization in multilateral trade negotiations?," Policy Research Working Paper Series 2374, The World Bank.
    2. Francois, Joseph F. & Martin, Will, 2004. "Commercial policy variability, bindings, and market access," European Economic Review, Elsevier, vol. 48(3), pages 665-679, June.
    3. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.

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