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Do Sensitive Products Undermine Ambition?

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  • Vanzetti, David
  • Peters, Ralf

Abstract

The long-running WTO negotiations remain unresolved. Agriculture is the main stumbling block. Members have agreed to linear tariff reductions within bands, but proposed exemptions for sensitive products, while providing for much needed flexibility, threaten to undermine the ambition. A detailed partial equilibrium global agricultural trade model is used to analyse the likely impact of exemptions from the formula tariff reductions. Applying one third of the formula cuts to the five per cent of lines with the highest tariffs increases the final developed country average agricultural tariff from 16 to 24 per cent but the negative impacts on trade and welfare are less dramatic.

Suggested Citation

  • Vanzetti, David & Peters, Ralf, 2008. "Do Sensitive Products Undermine Ambition?," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6044, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare08:6044
    DOI: 10.22004/ag.econ.6044
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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.
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    Cited by:

    1. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
    2. Burrell, Alison M. & Ferrari, Emanuele & Mallado, Aida Gonzalez & Michalek, Jerzy, 2012. "EU market access for agricultural products in the Doha Development Round: A sensitive issue," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126950, International Association of Agricultural Economists.
    3. Blandford, David & Laborde, David & Martin, Will, 2008. "Implications for the United States of the May 2008 Draft Agricultural Modalities," WTO Doha Round 320116, International Centre for Trade and Sustainable Development (ICTSD).
    4. Yang, Jun & Huang, Jikun & Rozelle, Scott & Martin, Will, 2012. "Where is the balance? Implications of adopting Special Products and Sensitive Products in Doha negotiations for world and China's agriculture," China Economic Review, Elsevier, vol. 23(3), pages 651-664.
    5. Honkatukia, Juha, 2008. "What role subsidies? A CGE analysis of announcement effects of future policies on the development of emissions and energy consumption in Finland," Conference papers 331722, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Vanzetti, David & Peters, Ralf, 2013. "Trade and agricultural employment linkages in general equilibrium modelling," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152182, Australian Agricultural and Resource Economics Society.

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