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GTAP Resource #2382

"Formulas and Flexibilities in Trade Negotiations: The Case of Sensitive Agricultural Products in the WTO"
by Laborde, David, Sebastien Jean and Will Martin

The formula approach used in the current WTO agricultural negotiations involves large cuts in high tariffs, but includes flexibilities that allow smaller cuts for self-selected exceptions. Difficulties in evaluating the effects of these exceptions—the so-called black-box problem—is widely believed to have been a major cause of the recent breakdown of the Doha negotiations. We use a political-economy welfare function and data at the detailed product level to assess the implications of this approach for welfare and for market access. With small tariff reductions on so-called sensitive products, we find that treating even around two percent of tariff lines as sensitive has a sharply adverse impact on welfare, but a much smaller negative impact on market access.

Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2007
Created: Laborde, D. (4/15/2007)
Updated: Laborde, D. (4/15/2007)
Visits: 2,941
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