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Assessing the potential cost of a failed Doha Round

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  • BOUET, ANTOINE
  • Laborde, David

Abstract

This study offers new conclusions on the economic cost of a failed Doha Development Agenda (DDA). We assess potential outcome of the Doha Round as well as four protectionist scenarios using the MIRAGE Computable General Equilibrium (CGE) model. In a scenario where applied tariffs of World Trade Organization (WTO) economies would go up to currently bound tariff rates, world trade would decrease by 9.9% and world welfare by US$353 billion. The economic cost of a failed DDA is here evaluated by the difference between a cooperative scenario (DDA) and a protectionist one (US$412 billion in terms of welfare). Another point of view is to compare a resort to protectionism when the DDA is implemented with a resort to protectionism when the DDA is not implemented. The findings show that this trade agreement could prevent the potential reduction of US$809 billion of trade and, therefore, acts as an efficient multilateral ‘preventive’ scheme against the adverse consequences of trade ‘beggar-thy-neighbor’ policies.

Suggested Citation

  • BOUET, ANTOINE & Laborde, David, 2010. "Assessing the potential cost of a failed Doha Round," World Trade Review, Cambridge University Press, vol. 9(2), pages 319-351, April.
  • Handle: RePEc:cup:wotrrv:v:9:y:2010:i:02:p:319-351_99
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    1. Bouët, Antoine & Laborde Debucquet, David, 2017. "Assessing the potential cost of a failed Doha Round:," IFPRI book chapters, in: Bouët, Antoine & Laborde Debucquet, David (ed.), Agriculture, development, and the global trading system: 2000– 2015, chapter 6, International Food Policy Research Institute (IFPRI).
    2. Bouet, Antoine & Decreux, Yvan & Fontagne, Lionel & Jean, Sebastien & Laborde, David, 2005. "A Consistent Picture of Applied Protection Across the World," Working Papers 18859, TRADEAG - Agricultural Trade Agreements.
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    9. Douglas A. Irwin, 1998. "The Smoot-Hawley Tariff: A Quantitative Assessment," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 326-334, May.
    10. Antoine Bouët & David Laborde, 2010. "Assessing the Potential Cost of a Failed Doha," Post-Print hal-01881925, HAL.
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    13. Boumellassa, Houssein & Debucquet, David Laborde & Mitaritonna, Cristina, 2009. "A picture of tariff protection across the World in 2004: MAcMap-HS6, Version 2," IFPRI discussion papers 903, International Food Policy Research Institute (IFPRI).
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