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Trade Policy Implications of Global Value Chains: Case Studies


  • Sébastien Miroudot


  • Dorothée Rouzet


  • Francesca Spinelli



Taking global value chains (GVCs) into account has important implications for trade policy. When production is vertically fragmented and trade in intermediate inputs is prevalent, one has to look differently at a certain number of issues. Through case studies, this paper provides new evidence on the incidence on services of tariffs levied on goods (case study 1) and then discusses effective rates of protection in a world of GVCs and what the removal of tariffs on intermediate inputs implies, using the example of Canada (case study 2). To illustrate how trade agreements could be made more relevant for GVCs, the paper further looks at sectoral approaches in trade negotiations through the example of the Information Technology Agreement (case study 3) and finally compares the network of regional trade agreements in force with global production networks (case study 4).

Suggested Citation

  • Sébastien Miroudot & Dorothée Rouzet & Francesca Spinelli, 2013. "Trade Policy Implications of Global Value Chains: Case Studies," OECD Trade Policy Papers 161, OECD Publishing.
  • Handle: RePEc:oec:traaab:161-en
    DOI: 10.1787/5k3tpt2t0zs1-en

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    Cited by:

    1. Davide Del Prete & Giorgia Giovannetti & Enrico Marvasi, 2017. "Global value chains participation and productivity gains for North African firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 675-701, November.
    2. Rita Cappariello & Sebastian Franco-Bedoya & Vanessa Gunnella & Gianmarco Ottaviano, 2020. "Rising protectionism and global value chains: quantifying the general equilibrium effects," CEP Discussion Papers dp1682, Centre for Economic Performance, LSE.
    3. Cecilia Bellora & Lionel Fontagné, 2019. "Shooting Oneself in the Foot? Trade War and Global Value Chains," Working Papers 2019-18, CEPII research center.
    4. Chiara Criscuolo & Jonathan Timmis, 2017. "The Relationship Between Global Value Chains and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 61-83, Spring.
    5. Amat Adarov & Robert Stehrer, 2019. "Implications of Foreign Direct Investment, Capital Formation and its Structure for Global Value Chains," wiiw Working Papers 170, The Vienna Institute for International Economic Studies, wiiw.
    6. Abdoulganiour Almame Tinta, 2017. "The determinants of participation in global value chains: The case of ECOWAS," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1389252-138, January.
    7. AfDB AfDB, . "Africa Competitiveness Report 2015," Africa Competitiveness Report, African Development Bank, number 2165.
    8. World Economic Forum & World Bank & African Development Bank & Organisation for Economic Co-operation and Development, 2015. "The Africa Competitiveness Report 2015," World Bank Publications, The World Bank, number 22014, June.
    9. Cecilia Bellora & Lionel Fontagné, 2019. "Shooting Oneself in the Foot? Trade War and Global Value Chains," Working Papers 2019-18, CEPII research center.
    10. Lucia Tajoli & Giulia Felice, 2018. "Global Value Chains Participation and Knowledge Spillovers in Developed and Developing Countries: An Empirical Investigation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 505-532, July.
    11. Dorothee Flaig & Susan F. Stone, 2017. "Local Content Requirements Versus Tariff Equivalents: How We Measure Matters," The World Economy, Wiley Blackwell, vol. 40(5), pages 931-948, May.
    12. Rita Cappariello & Milan Damjanovic & Michele Mancini & Filippo Vergara Caffarelli, 2018. "EU-UK global value chain trade and the indirect costs of Brexit," Questioni di Economia e Finanza (Occasional Papers) 468, Bank of Italy, Economic Research and International Relations Area.
    13. Pasadilla, Gloria O. & Wirjo, Andre, 2016. "Services-Manufacturing Linkage and the Role of Policy," Philippine Journal of Development PJD 2014-2015 Vol. 41-42 , Philippine Institute for Development Studies.
    14. Simola, Heli, 2019. "Evaluating international impacts of China-specific shocks in an input-output framework," BOFIT Discussion Papers 17/2019, Bank of Finland, Institute for Economies in Transition.

    More about this item


    cumulative tariffs; effective rates of protection; fragmentation of production; global value chains; network trade; regional trade agreements; trade in intermediate inputs; vertical specialization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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