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Trade policy flexibilities and Turkey : tariffs, antidumping, safeguards, and WTO dispute settlement

  • Bown, Chad P.

Trade policy commitments to lower import tariffs and to maintain tariffs at low levels entail short and long-run political-economic costs and benefits. Empirical work examining the relationship between such commitments and the exercise of trade policy flexibilities is still relatively nascent, especially for emerging economies. This paper provides a rich, empirically-based assessment of ways that Turkey exercised trade policy flexibilities during the global economic crisis of 2008-11. First, and despite multilateral and customs union commitments that might limit changes to applied tariffs, Turkey made changes to both its applied Most Favored Nation and preferential tariffs that cumulatively affect nearly 9 percent of manufacturing imports and 10 percent of import product lines. Second, Turkey's cumulative application of temporary trade barrier (TTB) policies -- antidumping, safeguards and countervailing duties -- are estimated to impact by 2011 an additional 4 percent of imports and 6 percent of product lines. Other surprising results on Turkey's use of flexibilities include: extending the duration of previously imposed antidumping and safeguards beyond expected removal dates, removing one TTB policy over a set of products and immediately reapplying a different TTB policy, covering lengthy upstream and downstream segments of important industries, and deepening discriminatory preference margins already inherent in existing preferential trade agreements.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6322.

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Date of creation: 01 Jan 2013
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Handle: RePEc:wbk:wbrwps:6322
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  1. Kyle Bagwell & Robert W. Staiger, 2005. "Enforcement, Private Political Pressure, and the General Agreement on Tariffs and Trade/World Trade Organization Escape Clause," The Journal of Legal Studies, University of Chicago Press, vol. 34(2), pages 471-513, 06.
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  3. Maggi, G & Rodriguez-Clare, A, 1996. "The Value of Trade Agreements in the Presence of Political Pressures," Papers 180, Princeton, Woodrow Wilson School - Public and International Affairs.
  4. Thomas J. Prusa & Robert Teh, 2010. "Protection Reduction and Diversion: PTAs and the Incidence of Antidumping Disputes," NBER Working Papers 16276, National Bureau of Economic Research, Inc.
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  6. Hiau Looi Kee & Cristina Neagu & Alessandro Nicita, 2013. "Is Protectionism on the Rise? Assessing National Trade Policies during the Crisis of 2008," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 342-346, March.
  7. Chad Bown & Meredith Crowley, 2013. "Emerging economies, trade policy, and macroeconomic shock," Working Paper Series WP-2012-18, Federal Reserve Bank of Chicago.
  8. Bown, Chad P. & McCulloch, Rachel, 2010. "Developing countries, dispute settlement, and the advisory centre on WTO law," Policy Research Working Paper Series 5168, The World Bank.
  9. Hoekman, Bernard M. & Leidy, Michael P., 1992. "Cascading contingent protection," European Economic Review, Elsevier, vol. 36(4), pages 883-892, May.
  10. Handley, Kyle & Limão, Nuno, 2012. "Trade and Investment under Policy Uncertainty: Theory and Firm Evidence," CEPR Discussion Papers 8798, C.E.P.R. Discussion Papers.
  11. Bown, Chad P. & Crowley, Meredith A., 2010. "Self-enforcing trade agreements : evidence from time-varying trade policy," Policy Research Working Paper Series 5223, The World Bank.
  12. Kyle Bagwell & Robert W. Staiger, 2006. "What Do Trade Negotiators Negotiate About? Empirical Evidence from the World Trade Organization," NBER Working Papers 12727, National Bureau of Economic Research, Inc.
  13. Francois, Joseph & Martin, Will, 2002. "Commercial Policy Variability, Bindings and Market Access," CEPR Discussion Papers 3294, C.E.P.R. Discussion Papers.
  14. Baybars Karacaovali, 2011. "Turkey: Temporary Trade Barriers as Resistance to Trade Liberalization with the European Union?," Working Papers 201107, University of Hawaii at Manoa, Department of Economics.
  15. Bown, Chad P. & Crowley, Meredith A., 2013. "Import protection, business cycles, and exchange rates: Evidence from the Great Recession," Journal of International Economics, Elsevier, vol. 90(1), pages 50-64.
  16. Limão, Nuno & Tovar, Patricia, 2011. "Policy choice: Theory and evidence from commitment via international trade agreements," Journal of International Economics, Elsevier, vol. 85(2), pages 186-205.
  17. Michael O. Moore, 2006. "An Econometric Analysis of U.S. Antidumping Sunset Review Decisions," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(1), pages 122-150, April.
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