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Sensitive products in the Doha negotiations: The case of European and Japanese market access

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  • Gouel, Christophe
  • Mitaritonna, Cristina
  • Ramos, Maria Priscila

Abstract

Given the highly concentrated distribution of agricultural protection, allowing in the negotiations too many exceptions through sensitive products puts at risk the objectives of World Trade Organization. This issue is difficult to analyze with the commonly used applied trade models, because they represent trade flows at an aggregate level, while sensitive products are picked at the product level and their protection, under the form of tariff-rate quotas, is contingent on the level of imports. This paper assesses the effect of these exceptions, based on the case of agricultural trade protection in Europe and Japan, two countries where tariff dismantling in the agricultural sector is a particularly sensitive issue. Since agricultural border protection is heterogeneous, we avoid aggregation bias by extending a multi-country computable general equilibrium model to the product level. This allows us to represent trade policies explicitly and to account for their interdependencies. The results suggest that consideration of sensitive products strongly limits the potential gains from a possible agriculture agreement at Doha. Moreover, there is no aggregate trade-off between decreasing tariffs and increasing/opening quotas. To achieve “substantial” market access improvements in the agricultural sector, the objective should be most favored nation tariff reduction.

Suggested Citation

  • Gouel, Christophe & Mitaritonna, Cristina & Ramos, Maria Priscila, 2011. "Sensitive products in the Doha negotiations: The case of European and Japanese market access," Economic Modelling, Elsevier, vol. 28(6), pages 2395-2403.
  • Handle: RePEc:eee:ecmode:v:28:y:2011:i:6:p:2395-2403
    DOI: 10.1016/j.econmod.2011.06.014
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    1. repec:bla:worlde:v:40:y:2017:i:1:p:36-55 is not listed on IDEAS
    2. Yvan Decreux & Lionel Fontagné, 2014. "What next for the DDA? Quantifying the role of negotiation modalities," RSCAS Working Papers 2014/61, European University Institute.
    3. Lionel Fontagné & Jean Fouré & Alexander Keck, 2017. "Simulating World Trade in the Decades Ahead: Driving Forces and Policy Implications," The World Economy, Wiley Blackwell, vol. 40(1), pages 36-55, January.
    4. Listorti, Giulia & Kempen, Markus & Girardin, Jean & Kranzlein, Tim, 2011. "Do Price Uncertainties Affect the Use of Policy Flexibilities? The Selection of Sensitive Products in WTO Agricultural Negotiations," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114381, European Association of Agricultural Economists.
    5. Jean, Sébastien & Mulder, Nanno & Ramos, María Priscila, 2014. "A general equilibrium, ex-post evaluation of the EU–Chile Free Trade Agreement," Economic Modelling, Elsevier, vol. 41(C), pages 33-45.
    6. Houssein Guimbard & Maëlan Le Goff, 2014. "Mega-deals: What Consequences for sub-Saharan Africa?," Working Papers 2014-28, CEPII research center.
    7. Yvan Decreux & Lionel Fontagné, 2011. "Economic Impact of Potential Outcome of the DDA," Working Papers 2011-23, CEPII research center.
    8. Listorti, Giulia & Tonini, Axel & Kempen, Markus & Adenauer, Marcel, 2013. "How to Implement WTO Scenarios in Simulation Models: Linking the TRIMAG Tariff Aggregation Tool to Capri," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160388, European Association of Agricultural Economists.
    9. Yvan Decreux & Lionel Fontagné, 2013. "What Did Happen in the DDA? Quantifying the Role of Negotiation Modalities," Working Papers 2013-38, CEPII research center.
    10. David Laborde & Will Martin & Dominique van der Mensbrugghe, 2017. "Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions," Review of International Economics, Wiley Blackwell, vol. 25(2), pages 403-425, May.
    11. repec:eee:ecmode:v:64:y:2017:i:c:p:399-408 is not listed on IDEAS
    12. Decreux, Yvan & Fontagné, Lionel, 2015. "What Next for Multilateral Trade Talks? Quantifying the Role of Negotiation Modalities," World Trade Review, Cambridge University Press, vol. 14(01), pages 29-43, January.
    13. Lionel Fontagné & Jean Fouré & Alexander Keck, 2014. "Simulating World Trade In The Decades Ahead: Driving Forces And Policy Implications," Working Papers hal-01299832, HAL.
    14. Abbassi, Abdessalem & Tamini, Lota D. & Dakhlaoui, Ahlem, 2015. "Import quota allocation between regions under Cournot competition," Economic Modelling, Elsevier, vol. 51(C), pages 484-490.
    15. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    16. Countryman, Amanda M. & Narayanan, Badri G., 2017. "Price volatility, tariff structure and the special safeguard mechanism," Economic Modelling, Elsevier, vol. 64(C), pages 399-408.
    17. Yvan Decreux & Lionel Fontagné, 2014. "What next for the DDA? Quantifying the role of negotiation modalities," Working Papers hal-01299828, HAL.

    More about this item

    Keywords

    Agricultural trade; Doha Development Agenda; Computable general equilibrium model; Disaggregation; Sensitive products; Tariff-rate quotas;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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