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WTO Negotiations on Market Access in Agriculture: a Comparison of Alternative Tariff Cut Proposals for the EU and the US

  • Bureau Jean-Christophe


    (Institut Nationale Agronomique)

  • Salvatici Luca


    (University of Molise)

This paper provides a summary measure of the possible new commitments in the area of agricultural market access undertaken by the European Union and the United States, using the Trade Restrictiveness Index (TRI) as the tariff aggregator. We take the 2001 bound tariffs as the starting point and attempt to assess how much liberalization in agriculture could be achieved in the European Union and the United States as a result of the present negotiations. We compute the index for 20 agricultural commodity aggregates under the actual commitments assuming a specific functional form for import demand. We compare the present levels of the TRI with three hypothetical cases: a repetition of the same set of tariff cuts commitments of the Uruguay Round according to a EU proposal prior to the 2003 WTO ministerial meeting, a uniform 36% reduction of each tariff, an harmonization ( "Swiss" ) formula based on the initial US proposal.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 4 (2004)
Issue (Month): 1 (March)
Pages: 1-35

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Handle: RePEc:bpj:bejeap:v:topics.4:y:2004:i:1:n:8
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  1. McDaniel, Christine A. & Balistreri, Edward J., 2002. "A Discussion on Armington Trade Substitution Elasticities," Working Papers 15856, United States International Trade Commission, Office of Economics.
  2. Neary, J. P., 1997. "Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs, and Subsidies to High-Technology Industries," Papers 97/26, College Dublin, Department of Political Economy-.
  3. James E. Anderson & J. Peter Neary, 1999. "The Mercantilist Index of Trade Policy," NBER Working Papers 6870, National Bureau of Economic Research, Inc.
  4. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Economie Internationale, CEPII research center, issue 87, pages 107-130.
  5. Tatsuo Hatta, 1977. "A Theory of Piecemeal Policy Recommendations," Review of Economic Studies, Oxford University Press, vol. 44(1), pages 1-21.
  6. Diao, Xinshen & Elbehri, Aziz & Gehlhar, Mark J. & Gibson, Paul R. & Leetmaa, Susan E. & Mitchell, Lorraine & Nelson, Frederick J. & Nimon, R. Wesley & Normile, Mary Anne & Roe, Terry L. & Shapouri, S, 2001. "Agricultural Policy Reform In The Wto: The Road Ahead," Agricultural Economics Reports 34015, United States Department of Agriculture, Economic Research Service.
  7. James E. Anderson & J. Peter Neary, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Oxford University Press, vol. 63(1), pages 107-125.
  8. J-C Bureau & L Fulponi & L Salvatici, 2000. "Comparing EU and US trade liberalisation under the Uruguay Round Agreement on Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(3), pages 259-280, September.
  9. Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102, January.
  10. 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.
  11. Hugh M. Arce & Kenneth A. Reinert, 1994. "Aggregation and the Welfare Analysis of US Tariffs," Journal of Economic Studies, Emerald Group Publishing, vol. 21(6), pages 26-30, October.
  12. Lloyd, P J, 1975. "Substitution Effects and Biases in Nontrue Price Indices," American Economic Review, American Economic Association, vol. 65(3), pages 301-13, June.
  13. Luca Salvatici, 2001. "Trade Distortion Indexes and Applied General Equilibrium Models: The Case of the Common Agricoltural Policy," Working Papers 45, University of Rome La Sapienza, Department of Public Economics.
  14. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service.
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