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Sensitive Products: Selection and Implications for Agricultural Trade Negotiations

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  • Jean, Sebastien
  • Laborde, David
  • Martin, Will

Abstract

The current negotiating framework for WTO negotiations on agriculture includes flexibilities for "sensitive" products to be chosen by the importer. Without knowing which products their partners are likely to select, WTO members cannot assess the implications of an agreement for their market access opportunities. In this paper, we begin by specifying a Grossman-Helpman type political-economy welfare function, and use this to determine which products are likely to be selected as sensitive products. Assuming these products are subjected to smaller reduction in protection, we find that allowing even 2 percent of tariff lines to be treated as sensitive can greatly reduce the impact of an agreement on market access. This problem is, in part, a consequence of using a percentage of tariff lines as the constraint on the use of sensitive products. If the constraint on the products to be classified as sensitive takes more directly into account the interests of the exporter - being specified, for example, as a share of imports - then the adverse impacts on market access opportunities can be greatly reduced.
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  • Jean, Sebastien & Laborde, David & Martin, Will, 2005. "Sensitive Products: Selection and Implications for Agricultural Trade Negotiations," Conference papers 331439, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331439
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    References listed on IDEAS

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    2. Boulanger, Pierre & Dillen, Koen & Dudu, Hasan & Ferrari, Emanuele & Himics, Mihaly & M'Barek, Robert & Philippidis, George, 2017. "Cumulative economic assessment of future trade agreements on the EU agriculture," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261115, European Association of Agricultural Economists.
    3. Emanuele Ferrari & Christian Elleby & Beyhan DE JONG & Robert M'barek & Ignacio PEREZ DOMINGUEZ, 2024. "Cumulative economic impact of upcoming trade agreements on EU agriculture," JRC Research Reports JRC135540, Joint Research Centre.
    4. Sébastien Jean & David Laborde & Will Martin, 2005. "Consequences of Alternative Formulas for Agricultural Tariff Cuts," Working Papers 2005-15, CEPII research center.
    5. John Gilbert, 2008. "Agricultural Trade Reform and Poverty in the Asia-Pacific: A Survey and Some New Results," Working Papers 2008-01, Utah State University, Department of Economics, revised 19 Dec 2008.
    6. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & Mihaly Himics & Robert M'barek, 2016. "Cumulative economic impact of future trade agreements on EU agriculture," JRC Research Reports JRC103602, Joint Research Centre.
    7. Emanuele Ferrari & Thomas Chatzopoulos & Ignacio Perez Dominguez & Pierre Boulanger & Kirsten Boysen-Urban & Mihaly Himics & Robert M’barek, 2021. "Cumulative economic impact of trade agreements on EU agriculture: 2021 update," JRC Research Reports JRC123037, Joint Research Centre.
    8. Jales, Mario & Josling, Timothy E. & Nassar, Andre Meloni & Tutwiler, M. Ann, 2005. "Market Access," Trade Issues Papers 14570, International Agricultural Trade Research Consortium.
    9. Strutt, Anna, 2008. "Dynamic Analysis of a BIMSTEC-Japan Free Trade Area," Conference papers 331715, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. John Gilbert, 2008. "Agricultural trade reform and poverty in the Asia-Pacific region: a survey and some new results," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 15(1), pages 1-34, June.
    11. Ramos, Maria Priscila, 2007. "Politique Commerciale, Qualité et Environnement: une Application aux Négociations Commerciales entre l’Union Européenne et le Mercosur," MPRA Paper 12640, University Library of Munich, Germany.
    12. Suwa-Eisenmann, Akiko & Cadot, Olivier & Gallezot, Jacques, 2009. "EU Trade Barriers in the Agri-food Sector: When Protection Breeds Dependence," CEPR Discussion Papers 7219, C.E.P.R. Discussion Papers.
    13. Jensen, Hans Grinsted & Baltzer, Kenneth & Babula, Ronald A. & Frandsen, Søren E., 2007. "The Economy-Wide Impact of Multilateral NAMA Traiff Reductions:A Global and Danish Perspective," Conference papers 331641, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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