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Tariff Aggregators in AGE Models: Trade Restrictiveness in EU and US Agriculture

Author

Listed:
  • Bureau, Jean-Christophe
  • Salvatici, Luca

Abstract

This paper provides a summary measure of the Uruguay Round (UR) tariff reduction commitments in the European Union (EU) and the United States (US), using the Mercantilistic Trade Restrictiveness Index (MTRI) as the tariff aggregator. We compute the index for agricultural commodity aggregates assuming a specific (CES) functional form for import demand. The levels of the MTRI under the actual commitments of the UR are computed and compared with two hypothetical cases, the Swiss Formula leading to a 36% average decrease in tariffs and a uniform 36% reduction of each tariff. The results are not only interesting in order to infer how reducing tariff dispersion would help improving market access in future trade agreemen as summary statistics on tariff protection, but they could also be used to feed information into more aggregated models.

Suggested Citation

  • Bureau, Jean-Christophe & Salvatici, Luca, 2001. "Tariff Aggregators in AGE Models: Trade Restrictiveness in EU and US Agriculture," Conference papers 330946, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330946
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