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Trade Policy Toward Supply Chains After the Great Recession

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  • Chad P. Bown

    () (CEPR)

Abstract

How does trade policy treat intermediate inputs relative to other imported products? Slow economic and trade growth during the recovery from the Great Recession, as well as recent political developments in the UK and USA, pose a threat to cross-border supply chains and have thus brought this question to the forefront of policy circles. This note investigates by examining new and detailed data on Group of 20 (G20) trade policy use through 2016, with a special emphasis on changes in policymaking behavior since 2010. First, there is no evidence that the G20 economies made significant changes to their applied import tariffs during this period. However, there has been a modest increase in import protection arising through other policy instruments of note such as the temporary trade barriers (TTBs) of antidumping, countervailing duties and safeguards. More importantly, there is evidence of changes in how countries have applied their TTBs. TTBs were increasingly imposed on imports not only from China, but also on imports from other countries, reversing a post-2001 trend. Furthermore, TTB protection has moved away from imports of final goods and toward imports of intermediate inputs. These shifts in policy have several potential contributing causes as well as economic consequences, including for cross-border supply chains.

Suggested Citation

  • Chad P. Bown, 2018. "Trade Policy Toward Supply Chains After the Great Recession," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 66(3), pages 602-616, September.
  • Handle: RePEc:pal:imfecr:v:66:y:2018:i:3:d:10.1057_s41308-018-0061-9
    DOI: 10.1057/s41308-018-0061-9
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    Cited by:

    1. Chad Brown & Paola Conconi & Aksel Erbahar & Lorenzo Trimarchi, 2020. "Trade Protection Along Supply Chains," Working Papers ECARES 2020-52, ULB -- Universite Libre de Bruxelles.
    2. Lionel Fontagné & Cecilia Bellora, 2019. "Shooting oneself in the foot? US trade policy coping with Global Value Chains," Post-Print hal-02128135, HAL.
    3. Al-Ubaydli, Omar, 2020. "Understanding How the Coronavirus Affects the Global Economy: A Guide for Non-Economists," MPRA Paper 99642, University Library of Munich, Germany.
    4. Bown, Chad P. & Erbahar, Aksel & Zanardi, Maurizio, 2020. "Global Value Chains and the Removal of Trade Protection," CEPR Discussion Papers 14451, C.E.P.R. Discussion Papers.
    5. Sébastien Miroudot & Håkan Nordström, 2020. "Made in the World? Global Value Chains in the Midst of Rising Protectionism," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 195-222, September.
    6. Cecilia Bellora & Lionel Fontagné, 2019. "Shooting Oneself in the Foot? Trade War and Global Value Chains," Working Papers 2019-18, CEPII research center.
    7. Stefano Schiavo & Chiara Tomasi & Min Zhu, 0. "Anti-dumping activities against China: patterns and effects," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 0, pages 1-24.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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