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From Bound Duties to Actual Protection: Industrial Liberalisation in the Doha Round

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  • Mohamed Hedi Bchir
  • Lionel Fontagné
  • Sébastien Jean

Abstract

This study proposes a CGE assessment of multilateral liberalisation of non-agricultural market access. Scenarios considered include the so-called Girard proposal (with alternative choices for the involved coefficient), the removal of tariff peaks and complete liberalisation. This study is the first one to take duly into account the difference between bound and applied tariffs, while accounting for all enforced preferential trade arrangements and computing tariff cuts at the detailed product level (HS-6 classification). While non-agricultural market access liberalisation is found to be welfare-enhancing at the world level, cross-country distributive impacts prove significant. A soft liberalisation would not lower significantly applied duties in developing countries, due to their significant binding overhang. In contrast, a deep liberalisation would entail fierce price-competition between developing countries, largely specialised on similar sectors and on the same quality range.
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  • Mohamed Hedi Bchir & Lionel Fontagné & Sébastien Jean, 2005. "From Bound Duties to Actual Protection: Industrial Liberalisation in the Doha Round," Working Papers 2005-12, CEPII research center.
    • Handle: RePEc:cii:cepidt:2005-12
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    References listed on IDEAS

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    1. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2002. "Eliminating Excessive Tariffs on Exports of Least Developed Countries," The World Bank Economic Review, World Bank, vol. 16(1), pages 1-21, June.
    2. Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
    3. Joseph Francois & Will Martin, 2003. "Formula Approaches for Market Access Negotiations," The World Economy, Wiley Blackwell, vol. 26(1), pages 1-28, January.
    4. Antoine Bouët & Jean‐Christophe Bureau & Yvan Decreux & Sébastien Jean, 2005. "Multilateral Agricultural Trade Liberalisation: The Contrasting Fortunes of Developing Countries in the Doha Round," The World Economy, Wiley Blackwell, vol. 28(9), pages 1329-1354, September.
    5. Joseph Francois & Hans van Meijl, 2003. "Economic Implications of Trade Liberalization Under the Doha Round," Working Papers 2003-20, CEPII research center.
    6. Coudert, Virginie & Dubert, Marc, 2005. "Does exchange rate regime explain differences in economic results for Asian countries?," Journal of Asian Economics, Elsevier, vol. 16(5), pages 874-895, October.
    7. Peter K. Schott, 2004. "Across-Product Versus Within-Product Specialization in International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 647-678.
    8. Agnès Bénassy-Quéré & Amina Lahrèche-Revil & Lionel Fontagné, 2003. "Tax Competition and Foreign Direct Investment," Working Papers 2003-17, CEPII research center.
    9. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    10. World Bank, 2003. "Global Economic Prospects 2004 : Realizing the Development Promise of the Doha Agenda," World Bank Publications - Books, The World Bank Group, number 14782.
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    Citations

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    Cited by:

    1. Robinson, Sherman & Burfisher, Mary & McDonald, Scott & Thierfelder, Karen, 2006. "Deep Integration and Trade Productivity Links: Tentative Lessons from CGE International Trade Models," Conference papers 331517, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Bouët, Antoine, 2006. "What can the poor expect from trade liberalization?: opening the "black box" of trade modeling," MTID discussion papers 93, International Food Policy Research Institute (IFPRI).
    3. Antoine Bouët & Simon Mevel & David Orden, 2007. "More or Less Ambition in the Doha Round: Winners and Losers from Trade Liberalisation with a Development Perspective," The World Economy, Wiley Blackwell, vol. 30(8), pages 1253-1280, August.
    4. Bouët, Antoine & Laborde Debucquet, David, 2017. "Why is the Doha Development agenda failing? And what can be done? A computable general equilibrium-game theoretical approach :," IFPRI book chapters, in: Bouët, Antoine & Laborde Debucquet, David (ed.), Agriculture, development, and the global trading system: 2000– 2015, chapter 3, International Food Policy Research Institute (IFPRI).
    5. Jayatilleke S. Bandara, 2007. "The Effects of Agricultural Trade Liberalisation under the Doha Development Agenda with Special Reference to the Asia Pacific Region: A Brief Survey," Working Papers 3107, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    6. Mohamed Hedi Bchir & Sébastien Jean & David Laborde, 2006. "Binding Overhang and Tariff-Cutting Formulas," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(2), pages 207-232, July.
    7. Erbil, Can, 2001. "Trade Taxes are Better?!?," Conference papers 330921, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Goldbaum, Sergio & Coelho, Allexandro Mori & Lima, Maria Lúcia Labate Mantovanini Pádua & Cury, Samir, 2006. "Impacts of the proposals for tariff reductions in non-agricultural market access (Nama)," Textos para discussão 155, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).

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    More about this item

    Keywords

    CGEM; Market access; Tariffs; bound duties; preferential trade arrangements; Doha; binding overhang;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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