IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2006-010.html
   My bibliography  Save this paper

Will the Doha Round Lead to Preference Erosion?

Author

Listed:
  • Mr. John Romalis
  • Mary Amiti

Abstract

This paper assesses the effects of reducing tariffs under the Doha Round on market access for developing countries. It shows that for many developing countries, actual preferential access is less generous than it appears because of low product coverage or complex rules of origin. Thus lowering tariffs under the multilateral system is likely to lead to a net increase in market access for many developing countries, with gains in market access offsetting losses from preference erosion. Furthermore, comparing various tariff-cutting proposals, the research shows that the largest gains in market access are generated by higher tariff cuts in agriculture.

Suggested Citation

  • Mr. John Romalis & Mary Amiti, 2006. "Will the Doha Round Lead to Preference Erosion?," IMF Working Papers 2006/010, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/010
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18752
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Baldwin, R E & Murray, Tracy, 1977. "MFN Tariff Reductions and Developing Country Trade Benefits under the GSP," Economic Journal, Royal Economic Society, vol. 87(345), pages 30-46, March.
    2. Joseph Francois & Will Martin, 2003. "Formula Approaches for Market Access Negotiations," The World Economy, Wiley Blackwell, vol. 26(1), pages 1-28, January.
    3. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    4. Kimberly A. Clausing, 2001. "Trade creation and trade diversion in the Canada - United States Free Trade Agreement," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 677-696, August.
    5. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    6. Yongzheng Yang, 2005. "Africa in the Doha Round: Dealing with Preference Erosion and Beyond," IMF Policy Discussion Papers 2005/008, International Monetary Fund.
    7. Huiwen Lai & Daniel Trefler, 2002. "The Gains from Trade with Monopolistic Competition: Specification, Estimation, and Mis-Specification," NBER Working Papers 9169, National Bureau of Economic Research, Inc.
    8. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," The World Bank Economic Review, World Bank, vol. 20(2), pages 197-216.
    9. Mr. Hans P Lankes & Miss Katerina Alexandraki, 2004. "The Impact of Preference Erosionon Middle-Income Developing Countries," IMF Working Papers 2004/169, International Monetary Fund.
    10. Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003. "The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?," The World Economy, Wiley Blackwell, vol. 26(6), pages 829-851, June.
    11. Brenton, Paul & Ikezuki, Takako, 2004. "The initial and potential impact of preferential access to the U.S. market under the African Growth and Opportunity Act," Policy Research Working Paper Series 3262, The World Bank.
    12. James Devault, 1996. "Competitive Need Limits And The U.S. Generalized System Of Preference," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 58-66, October.
    13. Sébastien Jean & David Laborde & Will Martin, 2005. "Consequences of Alternative Formulas for Agricultural Tariff Cuts," Working Papers 2005-15, CEPII research center.
    14. John Romalis, 2007. "NAFTA's and CUSFTA's Impact on International Trade," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 416-435, August.
    15. Carolyn Evans & James Harrigan, 2005. "Tight Clothing. How the MFA Affects Asian Apparel Exports," NBER Chapters, in: International Trade in East Asia, pages 367-390, National Bureau of Economic Research, Inc.
    16. Dean, Judith M. & Wainio, John, 2006. "Quantifying the value of U.S. tariff preferences for developing countries," Policy Research Working Paper Series 3977, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erika Vianna Grossrieder, 2006. "Preference Erosion: The case of Bangladesh - A SUR-EC-AR Gravity Model of Trade," IHEID Working Papers 18-2007, Economics Section, The Graduate Institute of International Studies, revised Aug 2007.
    2. Valentina Raimondi & Margherita Scoppola & Alessandro Olper, 2012. "The Impact of European Union Preferential Policies in the Rice Industry: A Dynamic Panel Gravity Approach," FOODSECURE Working papers 4, LEI Wageningen UR.
    3. John Romalis, 2007. "Market Access, Openness and Growth," NBER Working Papers 13048, National Bureau of Economic Research, Inc.
    4. Richard Pomfret & Uwe Kaufmann & Christopher Findlay, 2010. "Are Preferential Tariffs Utilized? Evidence from Australian Imports, 2000-9," School of Economics and Public Policy Working Papers 2010-13, University of Adelaide, School of Economics and Public Policy.
    5. Richard Pomfret, 2021. "‘Regionalism’ and the global trade system," The World Economy, Wiley Blackwell, vol. 44(9), pages 2496-2514, September.
    6. Temitope Peter Ola, 2022. "Contributions Of African Growth And Opportunity Act To International Trade Of Sub-Saharan Africa," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 20(4), pages 327-345.
    7. Pedro J. Martinez Edo, 2011. "Reciprocal liberalization: Bilateral, plurilateral or multilateral?," STUDIES IN TRADE AND INVESTMENT, in: United Nations ESCAP (ed.), Trade beyond Doha: Prospects for Asia-Pacific Least Developed Countries, Studies in Trade and Investment 76, chapter 4, pages 60-94, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    8. Valentina Raimondi & Margherita Scoppola & Alessandro Olper, 2012. "Preference erosion and the developing countries exports to the EU: a dynamic panel gravity approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(4), pages 707-732, December.
    9. Simeon Djankov & Caroline Freund & Cong S. Pham, 2010. "Trading on Time," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 166-173, February.
    10. Olga Pindyuk & Leon Podkaminer & Sandor Richter, 2008. "Monthly Report No. 1/2008," wiiw Monthly Reports 2008-01, The Vienna Institute for International Economic Studies, wiiw.
    11. Bekkers, Eddy & Cariola, Gianmarco, 2022. "The impact of LDC graduation on trade: A quantitative assessment," WTO Staff Working Papers ERSD-2022-5, World Trade Organization (WTO), Economic Research and Statistics Division.
    12. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-33.
    13. Hamanaka, Shintaro, 2013. "A note on detecting biases in assessing the use of FTAs," Journal of Asian Economics, Elsevier, vol. 29(C), pages 24-32.
    14. Persson, Maria, 2013. "Trade Preferences from a Policy Perspective," Working Papers 2013:3, Lund University, Department of Economics.
    15. Josef Smolik & Michaela Zemanova, 2022. "Political Development Of The Republic Of Cuba In 2000–2021," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 20(4), pages 299-328.
    16. Radoslav Ivancik, 2022. "Security And Defence Policy Of The European Union In The Context Of The Conflict In Ukraine," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 20(4), pages 373-388.
    17. Lili Yan Ing & Shujiro Urata & Yoshifumi Fukunaga, . "How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    18. Martin Winkler, 2022. "International Treaties As A Source Of International Law – Selected Issues," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 20(4), pages 346-372.
    19. Patricia Simkova, 2022. "Julia Ebner: Going Dark: The Secret Social Lives Of Extremists," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 20(4), pages 389-392.
    20. Imad Kareem Alaamshani & Hanny Zurina Hamzah & Shivee Ranjanee Kaliappan & Normaz Wana Ismail, 2021. "Impact of Trade Facilitation on Extensive Margin," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 131-147.
    21. Legge, Stefan & Lukaszuk, Piotr, 2024. "The firm-level costs of utilizing free trade agreements," International Economics, Elsevier, vol. 178(C).
    22. Bernard Hoekman & Will Martin & Carlos A. Primo Braga, 2009. "Trade Preference Erosion : Measurement and Policy Response," World Bank Publications - Books, The World Bank Group, number 9437.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garth Frazer & Johannes Van Biesebroeck, 2010. "Trade Growth under the African Growth and Opportunity Act," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 128-144, February.
    2. Ingo Borchert, 2009. "Trade diversion under selective preferential market access," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(4), pages 1390-1410, November.
    3. Cooke, Edgar F. A., 2012. "Is the impact of AGOA heterogeneous?," MPRA Paper 43277, University Library of Munich, Germany.
    4. Antoine Bouët & Lionel Fontagné & Sébastien Jean, 2005. "Is Erosion of Tariff Preferences a Serious Concern?," Working Papers 2005-14, CEPII research center.
    5. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
    6. HAYAKAWA Kazunobu & JINJI Naoto & MATSUURA Toshiyuki & YOSHIMI Taiyo, 2019. "Costs of Utilizing Regional Trade Agreements," Discussion papers 19054, Research Institute of Economy, Trade and Industry (RIETI).
    7. Anania, Giovanni, 2010. "EU Economic Partnership Agreements and WTO negotiations. A quantitative assessment of trade preference granting and erosion in the banana market," Food Policy, Elsevier, vol. 35(2), pages 140-153, April.
    8. Daniel Trefler, 2004. "The Long and Short of the Canada-U. S. Free Trade Agreement," American Economic Review, American Economic Association, vol. 94(4), pages 870-895, September.
    9. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    10. Francesco Di Comite & Antonella Nocco & Gianluca Orefice, 2014. "Tariff reductions, trade patterns and the wage gap in a monopolistic competition model with vertical linkages," Working Papers 2014-02, CEPII research center.
    11. Will Martin & Kym Anderson, 2008. "Agricultural trade reform under the Doha Agenda: some key issues ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 1-16, March.
    12. Hailu, Martha Belete, 2006. "Effects of Bilateral Trade Agreements on the Multilateral Trading Arena: special consideration of EPA between EU and ACP countries," Conference papers 331542, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Brockmeier, Martina & Pelikan, Janine, 2006. "Agricultural Market Access: A Moving Target in the WTO Negotiations?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25428, International Association of Agricultural Economists.
    14. Walkenhorst, Peter & Cattaneo, Olivier, 2006. "Trade, Diversification and Growth in Nigeria," MPRA Paper 23735, University Library of Munich, Germany.
    15. Brockmeier, Martina & Pelikan, Janine & Klepper, Rainer, 2006. "Die Wto-Ministerkonferenz In Hongkong: Welche Handelswirkungen Haben Die Aktuellen Vorschlage Fur Den Marktzugang?," 46th Annual Conference, Giessen, Germany, October 4-6, 2006 14951, German Association of Agricultural Economists (GEWISOLA).
    16. Bchir, Hedi & Chemingui, Mohamed & Hammouda, Hakim ben & Karingi, Stephen, 2006. "The Potential Payoffs of implementing the Hong Kong Deal on Agriculture for African Countries: a multilevel analysis," Conference papers 331514, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Naoto JINJI & Kazunobu HAYAKAWA & Nuttawut LAKSANAPANYAKUL & Toshiyuki MATSUURA & Taiyo YOSHIMI, 2020. "A New Approach for Quantifying the Costs of Utilizing Regional Trade Agreements," Discussion papers e-19-010, Graduate School of Economics , Kyoto University.
    18. Romain Perez & Mustapha Sadni Jallab, 2009. "Preference erosion and market access liberalization: the African dilemma in multilateral negotiations on agriculture," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 277-292, July.
    19. Martina Brockmeier & Janine Pelikan, 2006. "Agricultural Market Access: A Moving Target in the WTO Negotiations?," The Institute for International Integration Studies Discussion Paper Series iiisdp125, IIIS.
    20. Ghazalian, Pascal L. & Cardwell, Ryan T., 2010. "Multilateral Trade Liberalisation and FDI: An Analytical Framework for the Implications for Trading Blocs," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(1), pages 1-21, May.

    More about this item

    Keywords

    WP; developing country; country; market; EU market; Preference erosion; market access; tariffs; trade preferences; comparative advantage goods; enter U.S.; GSP scheme; EU imports; EU preference; phased elimination; EU tariff; tariff cut; exporters to the United States; LDC country; Exports; Comparative advantage; Demand elasticity; Imports; South Asia;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2006/010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.