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Choosing formulas for market access negotiation : efficiency and market access considerations

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  • Manole, Vlad
  • Martin, Will
  • Francois, Joseph

Abstract

An important issue in multilateral trade negotiations is the approach taken to reduce tariffs. The authors believe that there are important advantages in formula approaches and survey a range of options between the sharply top-down Swiss formula and proportional cuts in tariffs. Over the range the authors consider, they find that the economic efficiency impacts for the importer are not greatly influenced by the extent to which higher tariffs face bigger cuts. However, top-down approaches appear to be more effective in reducing tariff escalation, and provide greater market access gains to poor countries.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3474.

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Date of creation: 01 Jan 2005
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Handle: RePEc:wbk:wbrwps:3474

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Keywords: Environmental Economics&Policies; Transport and Trade Logistics; Common Carriers Industry; Export Competitiveness; Trade Policy; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Export Competitiveness; Environmental Economics&Policies; World Trade Organization; Trade Policy;

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References

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  1. World Bank, 2001. "Global Economic Prospects and the Developing Countries 2001," World Bank Publications, The World Bank, number 14779, October.
  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. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2002. "Eliminating Excessive Tariffs on Exports of Least Developed Countries," World Bank Economic Review, World Bank Group, vol. 16(1), pages 1-21, June.
  4. Martin,Will & Winters,L. Alan (ed.), 1996. "The Uruguay Round and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521586016, October.
  5. Hertel, Thomas W & Martin, Will, 2001. "Second-Best Linkages and the Gains from Global Reform of Manufactures Trade," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 215-32, May.
  6. Lopez, Ramon & Panagariya, Arvind, 1992. "On the Theory of Piecemeal Tariff Reform: The Case of Pure Imported Intermediate Inputs," American Economic Review, American Economic Association, vol. 82(3), pages 615-25, June.
  7. Bernard Hoekman & Marcelo Olarreaga, 2002. "Une proposition pour l'OMC : La « super » clause de nation plus favorisée," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 81-90.
  8. 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.
  9. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
  10. Lloyd, P. J. & Schweinberger, A. G., 1988. "Trade expenditure functions and the gains from trade," Journal of International Economics, Elsevier, vol. 24(3-4), pages 275-297, May.
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Cited by:
  1. Diakantoni, Antonia & Escaith, Hubert, 2009. "Mapping the Tariff Waters," MPRA Paper 18960, University Library of Munich, Germany.
  2. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2005. "Alternative Market Access Scenarios in the Agriculture Trade Negotiations of the Doha Round," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2).
  3. Erika Vianna Grossrieder, 2006. "Preference Erosion: The case of Bangladesh - A SUR-EC-AR Gravity Model of Trade," IHEID Working Papers 18-2007, Economics Section, The Graduate Institute of International Studies, revised Aug 2007.

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