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Agricultural trade restrictiveness in the European Union and the United States


  • Jean-Christophe Bureau
  • Luca Salvatici


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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    References listed on IDEAS

    1. James E. Anderson & J. Peter Neary, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Oxford University Press, vol. 63(1), pages 107-125.
    2. Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
    3. Neary, J Peter, 1998. " Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs, and Subsidies to High-Technology Industries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 187-206, March.
    4. Lewbel, Arthur, 1996. "Aggregation without Separability: A Generalized Composite Commodity Theorem," American Economic Review, American Economic Association, vol. 86(3), pages 524-543, June.
    5. Laird, Samuel & Yeats, Alexander, 1988. "A Note on the Aggregation Bias in Current Procedures for the Measurement of Trade Barriers," Bulletin of Economic Research, Wiley Blackwell, vol. 40(2), pages 133-143, April.
    6. Bach, Christian F. & Martin, Will, 2001. "Would the right tariff aggregator for policy analysis please stand up?," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 621-635, August.
    7. Bureau Jean-Christophe & Salvatici Luca, 2004. "WTO Negotiations on Market Access in Agriculture: a Comparison of Alternative Tariff Cut Proposals for the EU and the US," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-35, March.
    8. John C. Beghin & Jean-Christophe Bureau & Sung Joon Park, 2003. "Food Security and Agricultural Protection in South Korea," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 618-632.
    9. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service.
    10. J-C Bureau & L Fulponi & L Salvatici, 2000. "Comparing EU and US trade liberalisation under the Uruguay Round Agreement on Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(3), pages 259-280, September.
    11. Lloyd, P J, 1975. "Substitution Effects and Biases in Nontrue Price Indices," American Economic Review, American Economic Association, vol. 65(3), pages 301-313, June.
    12. Oral Capps & H. Alan Love, 2002. "Econometric Considerations in the Use of Electronic Scanner Data to Conduct Consumer Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 807-816.
    13. Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102.
    14. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
    15. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
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    Cited by:

    1. Alan Matthews & Jacques Gallezot, 2006. "The role of EBA in the political economy of CAP reform," The Institute for International Integration Studies Discussion Paper Series iiisdp133, IIIS.
    2. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    3. Antimiani, Alessandro & Salvatici, Luca, 2005. "EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework," Working Papers 18856, TRADEAG - Agricultural Trade Agreements.
    4. 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, Dept. EGSeI.
    5. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.

    More about this item


    International agricultural trade; Protection; Tariff; Tariff factors;

    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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