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Things have changed (or Have they?) Tariff protection and environmental concerns in the WTO

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This paper considers the APEC and proposed EGA agreements which grant tariff concession in favor of "green" goods. We ?find that the practical signi?cance of the APEC agreement should not be overestimated as it involves modest tariff concessions over a subset of goods which are not heavily traded. Still, these agreements involve a paradigm shift to the extent that they use tariffs concessions negotiated on a purilateral basis as a policy instrument to meet public policy concern, instead of making market access conditional on meeting national regulations. We model the mechanism through which these tariff preferences provide incentives to change production in favor of green goods in exporting countries and highlight the challenges that the implementation of these agreements involve.

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  • Petros C. Mavroidis & Damien Neven, 2018. "Things have changed (or Have they?) Tariff protection and environmental concerns in the WTO," IHEID Working Papers 04-2018, Economics Section, The Graduate Institute of International Studies.
  • Handle: RePEc:gii:giihei:heidwp04-2018
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    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP04-2018.pdf
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    1. Henrik Horn & Petros C. Mavroidis, 2011. "To B(TA) or Not to B(TA)? On the Legality and Desirability of Border Tax Adjustments from a Trade Perspective," The World Economy, Wiley Blackwell, vol. 34(11), pages 1911-1937, November.
    2. Neven, Damien J., 2001. "How should "protection" be evaluated in Article III GATT disputes?," European Journal of Political Economy, Elsevier, vol. 17(2), pages 421-444, June.
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    Keywords

    WTO; APEC; EGA; Tari¤s; Terms of Trade; ex outs;

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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