Choosing Sensitive Agricultural Products in Trade Negotiations

Sebastien Jean, David Laborde Debucquet and Will Martin

Working Papers from CEPII research center

Abstract: The formula approach used in many trade negotiations involves large formula cuts in high tariffs, with flexibilities that allow smaller cuts for selected products. Difficulties in evaluating the effects of these exceptions can create major problems. We use a politicaleconomy welfare function and detailed data on the current WTO agricultural negotiations to assess the implications of this approach for welfare and for market access. We find that some previous rules of thumb greatly underestimate the impacts of such exceptions. Indeed, treating even a small number of tariff lines as sensitive and subjecting them to reduced cuts has a sharply adverse impact on welfare, and a smaller but still negative impact on market access.

Keywords: Agricultural trade; Trade negotiations; Market access; Sensitive products; WTO (search for similar items in EconPapers)
JEL-codes: F13 P16 Q17 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Working Paper: Choosing sensitive agricultural products in trade negotiations (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2008-18

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