IDEAS home Printed from
   My bibliography  Save this paper

Preferential Tariff Formation -- The Case of the United States



This paper addresses the impact of Multilateral Trade Liberalisation (MTL) on the preferential tariffs granted by the United States. For a given MFN tariff, we model the preferential tariff with a simple linear functional form. We take MTL of the US as known to the world by the end of Uruguay Round in 1994 and estimate its impact on preferential tariff negotiations during 1995 to 2007. We use a three dimensional panel data, which takes into account the partner, product and time variation of the data-set. To complete our data-set, we codify eight PTA legal agreements. We draw three important conclusions. First, the products that are highly protected do not get high preferential access even at the regional level. Second, reciprocity plays only a limited role in granting better preferential access. Third, irrespective of development level of the partner, the non-reciprocal GSP preferences always matter.

Suggested Citation

  • Vivek Joshi, 2010. "Preferential Tariff Formation -- The Case of the United States," IHEID Working Papers 06-2010, Economics Section, The Graduate Institute of International Studies, revised Mar 2010.
  • Handle: RePEc:gii:giihei:heidwp06-2010

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    Full references (including those not matched with items on IDEAS)

    More about this item


    MFN tariffs; preferential tariffs; reciprocity; GSP;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gii:giihei:heidwp06-2010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dorina Dobre). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.