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Choosing Sensitive Agricultural Products in Trade Negotiations

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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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    Cited by:

    1. Meysut Saygili & Ralph Peters & Christian Knebel, 2018. "African Continental Free Trade Area: Challenges and Opportunities of Tariff Reductions," UNCTAD Blue Series Papers 82, United Nations Conference on Trade and Development.
    2. Antoine Bouët & David Laborde, 2009. "The potential cost of a Failed Doha Round," Working Papers hal-01885165, HAL.
    3. Antoine Bouët & David Laborde, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," Post-Print hal-01881923, HAL.
    4. Antoine Bouet & David Laborde, 2010. "Eight years of Doha trade talks : where do we stand," Working Papers hal-00637589, HAL.
    5. Bouet, Antoine & Laborde Debucquet, David, 2010. "Eight years of Doha trade talks," IFPRI discussion papers 997, International Food Policy Research Institute (IFPRI).
    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. BOUET, ANTOINE & Laborde, David, 2010. "Assessing the potential cost of a failed Doha Round," World Trade Review, Cambridge University Press, vol. 9(2), pages 319-351, April.
    8. Will Martin & Aaditya Mattoo, 2010. "The Doha Development Agenda: What's on the table?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(1), pages 81-107.
    9. Bouet, Antoine & Laborde, David, 2008. "The potential cost of a failed Doha Round:," Issue briefs 56, International Food Policy Research Institute (IFPRI).
    10. repec:laf:wpaper:201001 is not listed on IDEAS
    11. repec:laf:wpaper:201003 is not listed on IDEAS
    12. Bouet, Antoine & Laborde, David, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-22, August.
    13. Habtamu Shiferaw Amogne & Taiji Hagiwara, 2021. "Impact of alternative regional trade arrangements on the Ethiopian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-26, December.

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    More about this item

    Keywords

    Agricultural trade; Trade negotiations; Market access; Sensitive products; WTO;
    All these keywords.

    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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