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Implications of the Doha market access proposals for developing countries

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  • Laborde, David
  • Martin, Will
  • van der Mensbrugghe, Dominique

Abstract

This paper uses detailed data on bound and applied tariffs to assess the consequences of the World Trade Organization’s December 2008 Modalities for tariffs levied and faced by developing countries, and the welfare implications of these reforms. The authors find that the tiered formula for agriculture would halve tariffs in industrial countries and lower them more modestly in developing countries. In non-agriculture, the formulas would reduce the tariff peaks facing developing countries and cut average industrial country tariffs by more than a third. The authors use a political-economy framework to assess the implications of flexibilities for the size of the tariff cuts and find they are likely to substantially reduce the outcome. However, despite the flexibilities, there are likely to be worthwhile gains, with applied tariffs facing developing countries cut by about 20 percent in agriculture and 27 percent in non-agriculture, and sizeable cuts in tariffs facing industrial countries. The welfare impacts of reform are evaluated using a new approach to aggregation that improves on the traditional, flawed approach of weighted-average tariffs. This substantially increases the estimated benefits of an agreement along the lines of these modalities, with estimated global income gains of up to $160 billion per year from market access reform.

Suggested Citation

  • Laborde, David & Martin, Will & van der Mensbrugghe, Dominique, 2011. "Implications of the Doha market access proposals for developing countries," Policy Research Working Paper Series 5679, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5679
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    References listed on IDEAS

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    1. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889, December.
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    Cited by:

    1. Säll, Sarah, 2015. "Distributional effects of environmental meat taxes in Sweden- Can the poor still eat meat?," Working Paper Series 2015:3, Swedish University of Agricultural Sciences, Department Economics.
    2. David Laborde & Simla Tokgoz & Maximo Torero, 2013. "Long-Term Drivers of Food and Nutrition Security," FOODSECURE Working papers 6, LEI Wageningen UR.
    3. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 877-931, Elsevier.
    4. Säll, Sarah, 2018. "Environmental food taxes and inequalities: Simulation of a meat tax in Sweden," Food Policy, Elsevier, vol. 74(C), pages 147-153.
    5. Hoekman, Bernard, 2011. "The WTO and the Doha Round: Walking on Two Legs," World Bank - Economic Premise, The World Bank, issue 68, pages 1-6, October.
    6. Bernard Hoekman, 2014. "Sustaining multilateral trade cooperation in a multipolar world economy," The Review of International Organizations, Springer, vol. 9(2), pages 241-260, June.
    7. van der Mensbrugghe, Dominique, 2013. "Modeling the Global Economy – Forward-Looking Scenarios for Agriculture," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 933-994, Elsevier.
    8. Alan Matthews, 2014. "Doha negotiations on agriculture and future of the WTO multilateral Trade System," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    9. Bernard Hoekman, 2014. "Supply Chains, Mega-Regionals and Multilateralism: A Road Map for the WTO," RSCAS Working Papers 2014/27, European University Institute.
    10. Lim, Song-Soo & Babula, Ronald A., 2013. "How Much Is It Worth to Protect Sensitive Products with Tariff-Rate Quotas?―A Korean Case," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 35(5), pages 1-26, January.
    11. Frank Vöhringer & Jean-Marie Grether & Nicole A. Mathys, 2013. "Trade and Climate Policies: Do Emissions from International Transport Matter?," The World Economy, Wiley Blackwell, vol. 36(3), pages 280-302, March.

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    Keywords

    International Trade and Trade Rules; Agribusiness; Free Trade; Trade Policy; Debt Markets;
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