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The WTO Negotiations on Industrial Tariffs : What is at Stake for Developing Countries?

  • Yilmaz Akyüz

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    This paper focuses on the implications of the negotiations on industrial tariffs for longer term industrialization in developing countries. It begins with a brief overview of the NAMA framework that is followed by a review of the historical experience of todays advanced countries regarding the use of tariffs in the course of their industrialization, and compares and contrasts it with the actual situation prevailing in developing countries today and the proposals put forward. Then it discusses the sectoral pattern and evolution of tariffs that may be needed in the course of industrial development in comparison with the constraints that would result from the proposals made by developed countries, and advances a simple alternative formula that can help reconcile policy flexibility with multilateral discipline. This is followed by an evaluation of various estimates of benefits of tariff cuts to developing countries. There the paper turns to the question of reciprocity from a broad developmental perspective. It is concluded with a brief summary of the key points on how the negotiations could accommodate both the immediate needs and longer-term interests of developing countries.

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    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22080.

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    Date of creation: Jan 2005
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    Handle: RePEc:eab:tradew:22080
    Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
    Web page: http://www.eaber.org

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    1. Michael A. Clemens & Jeffrey G. Williamson, 2002. "Closed Jaguar, Open Dragon: Comparing Tariffs in Latin America and Asia before World War II," NBER Working Papers 9401, National Bureau of Economic Research, Inc.
    2. Harcourt, G C, 1969. "Some Cambridge Controversies in the Theory of Capital," Journal of Economic Literature, American Economic Association, vol. 7(2), pages 369-405, June.
    3. Santiago Fernandez de Córdoba & Sam Laird & David Vanzetti, 2005. "Trick or Treat? Development Opportunities and Challenges in the WTO Negotiations on Industrial Tariffs," The World Economy, Wiley Blackwell, vol. 28(10), pages 1375-1400, October.
    4. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, June.
    5. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
    6. Douglas A. Irwin, 2001. "Tariffs and Growth in Late Nineteenth Century America," The World Economy, Wiley Blackwell, vol. 24(1), pages 15-30, 01.
    7. David N. DeJong & Marla Ripoll, 2006. "Tariffs and Growth: An Empirical Exploration of Contingent Relationships," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 625-640, November.
    8. Pradhan, Jaya Prakash, 2003. "Rise of service sector outward foreign direct investment from Indian economy: trends, patterns, and determinants," MPRA Paper 17078, University Library of Munich, Germany.
    9. Jeffrey G. Williamson, 2003. "Was It Stolper-Samuelson, Infant Industry or Something Else? World Trade Tariffs 1789-1938," NBER Working Papers 9656, National Bureau of Economic Research, Inc.
    10. Michael A. Clemens & Jeffrey G. Williamson, 2001. "A Tariff-Growth Paradox? Protection's Impact the World Around 1875-1997," NBER Working Papers 8459, National Bureau of Economic Research, Inc.
    11. Douglas A. Irwin, 2002. "Interpreting the Tariff-Growth Correlation of the Late Nineteenth Century," NBER Working Papers 8739, National Bureau of Economic Research, Inc.
    12. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, EconWPA.
    13. Irwin, Douglas A., 2003. "New Estimates of the Average Tariff of the United States, 1790 1820," The Journal of Economic History, Cambridge University Press, vol. 63(02), pages 506-513, June.
    14. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
    15. Douglas A. Irwin, 2002. "Did Import Substitution Promote Growth in the Late Nineteenth Century?," NBER Working Papers 8751, National Bureau of Economic Research, Inc.
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