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WTO Negociations on Market Access in Agriculture: a Comparison of alternative Tariff Cut Proposals for the EU and the US

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  • Jean-Christophe Bureau
  • Luca Salvatici

Abstract

This paper provides a summary measure of the possible new commitments in the area of agricultural market access undertaken by the European Union and the United States, using the Trade Restrictiveness Index (TRI) as the tariff aggregator. Indicators such as the TRI, based on welfare theory, integrate economic behavioural assumptions within a balance of trade framework. We take the 2000 bound tariffs as the starting point and attempt to assess how much liberalisation in agriculture could be achieved in the European Union and the United States as a result of the present negotiations. We compute the index for 20 agricultural commodity aggregates under the actual commitments of the Uruguay Round assuming a specific (Constant Elasticity of Substitution) functional form for import demand. Then, we estimate the deadweight losses implied by each tariff structure in order to assess the benefits of future trade agreements in terms of increased efficiency. We compare the present levels of the TRI with three hypothetical cases: a repetition of the same set of tariff cuts commitments of the Uruguay Round according to the EU proposal, a uniform 36 percent reduction of each tariff, an harmonization ("Swiss") formula based on the US proposal.

Suggested Citation

  • Jean-Christophe Bureau & Luca Salvatici, 2003. "WTO Negociations on Market Access in Agriculture: a Comparison of alternative Tariff Cut Proposals for the EU and the US," Working Papers 2003/03, INRA, Economie Publique.
  • Handle: RePEc:apu:wpaper:2003/03
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    Cited by:

    1. Jean‐Christophe Bureau & Luca Salvatici, 2005. "Agricultural trade restrictiveness in the European Union and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 479-490, November.
    2. Rod Tyers, 2004. "Implicit Policy Preferences and Trade Reform by Tariff Aggregates," ANU Working Papers in Economics and Econometrics 2004-445, Australian National University, College of Business and Economics, School of Economics.
    3. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.
    4. Hailu, Martha Belete, 2006. "Effects of Bilateral Trade Agreements on the Multilateral Trading Arena: special consideration of EPA between EU and ACP countries," Conference papers 331542, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Xie, Zhenzhen & Li, Jiatao, 2015. "Demand Heterogeneity, Learning Diversity and Innovation in an Emerging Economy," Journal of International Management, Elsevier, vol. 21(4), pages 277-292.
    6. Franz Sinabell & Erwin Schmid, 2008. "Analyse von Handlungsoptionen für die Zukunft des Milchmarktes in Österreich," WIFO Studies, WIFO, number 31543.
    7. 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.
    8. Pelikan, Janine & Brockmeier, Martina, 2008. "Im Dschungel der Importzölle – Die Bedeutung der verwendeten Methodik bei der Aggregation von Importzöllen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(02), pages 1-11.
    9. Alessandro Antimiani & Piero Conforti & Luca Salvatici, 2008. "Measuring Restrictiveness of Bilateral Trade Policies: A Comparison between Developed and Developing Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 207-224, July.
    10. Brockmeier, Martina & Pelikan, Janine, 2006. "Agricultural Market Access: A Moving Target in the WTO Negotiations?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25428, International Association of Agricultural Economists.
    11. Martina Brockmeier & Janine Pelikan, 2006. "Agricultural Market Access: A Moving Target in the WTO Negotiations?," The Institute for International Integration Studies Discussion Paper Series iiisdp125, IIIS.
    12. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2005. "Agricultural Trade Liberalization: Assessing the Consequences for Developing Countries," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24628, European Association of Agricultural Economists.
    13. Alessandro Olper & Valentina Raimondi, 2008. "Market Access Asymmetry in Food Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(3), pages 509-537, October.
    14. Janine Pelikan & Martina Brockmeier, 2008. "Tariff Aggregation and Market Access: An Empirical Assessment for Canada and the EU," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 413-427, December.
    15. Pelikan, J. & Brockmeier, M., 2009. "Wohlfahrtswirkungen einer Handelsliberalisierung: Welchen Einfluss hat die Zollaggregation auf die Modellergebnisse?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.
    16. Brockmeier, Martina & Pelikan, Janine, 2008. "Agricultural market access: A moving target in the WTO negotiations?," Food Policy, Elsevier, vol. 33(3), pages 250-259, June.
    17. Mahdi Ghodsi, 2020. "The impact of Chinese technical barriers to trade on its manufacturing imports when exporters are heterogeneous," Empirical Economics, Springer, vol. 59(4), pages 1667-1698, October.
    18. Himics, Mihály & Britz, Wolfgang, 2016. "Flexible and welfare-consistent tariff aggregation over exporter regions," Economic Modelling, Elsevier, vol. 53(C), pages 375-387.

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    More about this item

    Keywords

    Commercial Policy; Trade Negotiations; Agriculture in International Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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