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Choosing Sensitive Agricultural Products in Trade Negotiations

Author

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  • Sébastien Jean
  • David Laborde
  • Will Martin

Abstract

The formula approach used in many trade negotiations involves large formula cuts in high tariffs, with flexibilities that allow smaller cuts for selected products. Difficulties in evaluating the effects of these exceptions can create major problems. We use a politicaleconomy welfare function and detailed data on the current WTO agricultural negotiations to assess the implications of this approach for welfare and for market access. We find that some previous rules of thumb greatly underestimate the impacts of such exceptions. Indeed, treating even a small number of tariff lines as sensitive and subjecting them to reduced cuts has a sharply adverse impact on welfare, and a smaller but still negative impact on market access.

Suggested Citation

  • Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
  • Handle: RePEc:cii:cepidt:2008-18
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    References listed on IDEAS

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    Cited by:

    1. BOUET, ANTOINE & Laborde, David, 2010. "Assessing the potential cost of a failed Doha Round," World Trade Review, Cambridge University Press, vol. 9(02), pages 319-351, April.
    2. Bouet, Antoine & Laborde Debucquet, David, 2010. "Eight years of Doha trade talks," IFPRI discussion papers 997, International Food Policy Research Institute (IFPRI).
    3. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round:," Issue briefs 56, International Food Policy Research Institute (IFPRI).
    4. Will Martin & Aaditya Mattoo, 2010. "The Doha Development Agenda: What's on the table?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 81-107.
    5. Bouet, Antoine & Laborde, David, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 11(2).
    6. Bouët, Antoine & Laborde Debucquet, David & Dienesch, Elisa & Elliot, Kimberly, 2010. "The costs and benefits of duty-free, quota-free market access for poor countries," IFPRI discussion papers 990, International Food Policy Research Institute (IFPRI).
    7. repec:laf:wpaper:201003 is not listed on IDEAS
    8. repec:laf:wpaper:201001 is not listed on IDEAS

    More about this item

    Keywords

    Agricultural trade; Trade negotiations; Market access; Sensitive products; WTO;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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