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GTAP Resource #2182

"The Australian preferential tariff regime"
by Lippoldt, Douglas

The paper opens with an overview of these arrangements, followed by a detailed statistical review. It then moves to examine several topics of particular interest in the discussion of Australian preferences. A simulation of the welfare impacts of preference erosion is then presented, followed by some brief concluding remarks.

Compared to the Quad countries, Australia is a relatively small market for developing countries. At the same time, it is a relatively open market and some developing countries have come to rely on it as a destination for exports. Given the structure of exports from developing countries, MFN access is often available at duty-free or low-duty rates and provides an attractive channel for entry. Concessional and preferential schemes provide important additional channels for developing countries exporting some goods that are subject to constraining MFN tariffs.

Most developing countries have not come to rely on the Australian preferences for a large share of their trade. However, a few smaller countries -- particularly some with geographic proximity to Australia -- have come to rely on the Australian referential regime for fairly significant shares of their exports. This reliance is associated with a degree of sector-specific concentration in the utilisation of preferences.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: OECD Trade Policy Working Paper
Date: 2006
Version: No. 33
Created: Lippoldt, D. (9/14/2006)
Updated: Dimaranan, B. (9/15/2006)
Visits: 1,348
- Preferential trading arrangements

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