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Binding overhang and tariff-cutting formulas: A systematic, world-wide quantitative assessment

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  • Bchir, Mohamed Hedi
  • Jean, Sébastien
  • Laborde, David

Abstract

Based on WTO’s Consolidated Tariff Schedules (CTS) database and on national sources, we propose a systematic assessment of ad valorem-equivalent bound duties at the detailed product level, for almost all WTO members. In doing this in a way fully consistent with the assessment of applied protection provided in the MAcMap-HS6 database (Bouët et al., 2004), we build a unique tool allowing the full structure of protection –bound, MFN applied, preferential applied duties- to be accurately assessed. We use this database to provide with a worldwide assessment of the binding overhang, i.e. the gap between bound and applied MFN tariffs. We also assess the likely applied-protection impact of an agreement in the Doha Round, based on the Harbinson Proposal for agricultural products, and on the Girard Proposal for non-agricultural products. In all cases, we show the difference between bound and applied protection to be key in understanding both the structure of protection worldwide, and the possible impact of liberalisation scenario cutting bound duties, as uses to be the case in multilateral liberalisations.

Suggested Citation

  • Bchir, Mohamed Hedi & Jean, Sébastien & Laborde, David, 2005. "Binding overhang and tariff-cutting formulas: A systematic, world-wide quantitative assessment," Conference papers 331435, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331435
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    References listed on IDEAS

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    1. Joseph F. Francois & Ian Wooton, 2001. "Trade in International Transport Services: The Role of Competition," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 249-261, May.
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