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Agricultural trade restrictiveness in the European Union and the United States

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Listed:
  • Jean-Christophe Bureau
  • Luca Salvatici

Abstract

The paper provides a summary measure of the Uruguay Round tariff reduction commitments in the European Union and the United States, using the Mercantilistic Trade Restrictiveness Index (MTRI) as the tariff aggregator. We compute the index for agricultural commodity aggregates assuming a specific (Constant Elasticity of Substitution) functional form for import demand. The levels of the MTRI under the actual commitments of the Uruguay Round are computed and compared with two hypothetical cases, a deeper cut in higher tariffs and a uniform reduction of each tariff, both leading to the same average reduction as in the Uruguay Round. This makes it possible to infer how reducing tariff dispersion will help improve market access in future trade agreements, and provides some guidelines for aggregating detailed tariffs in trade models.

Suggested Citation

  • Jean-Christophe Bureau & Luca Salvatici, 2004. "Agricultural trade restrictiveness in the European Union and the United States," Working Papers 2004/03, INRA, Economie Publique.
    • Handle: RePEc:apu:wpaper:2004/03
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    2. Conforti, Piero & Ford, Deep & Hallam, David & Rapsomanikis, George & Salvatici, Luca, 2007. "The European Union preferential trade with developing countries. Total trade restrictiveness and the case of sugar," Economics & Statistics Discussion Papers esdp07037, University of Molise, Department 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. Luca Salvatici & Silvia Nenci, 2017. "New features, forgotten costs and counterfactual gains of the international trading system," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 592-633.
    5. Urban, Kirsten & Brockmeier, Martina & Jensen, Hans Grinsted, 2015. "Evaluating the Effect of Domestic Support on International Trade: A Mercantilist Trade Restrictiveness Approach," Conference papers 332615, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Matthews, Alan & Gallezot, Jacques, 2006. "The role of EBA in the political economy of CAP reform," Working Papers 18864, TRADEAG - Agricultural Trade Agreements.
    7. Antimiani, Alessandro & Salvatici, Luca, 2005. "EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework," Working Papers 18856, TRADEAG - Agricultural Trade Agreements.

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    Keywords

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    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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