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GTAP Resource #3829

by Bouët, Antoine, Carmen Estrades and David Laborde

Trade negotiations have been largely driven by mercantilist interests seeing imports as a threat and exports as opportunities. Therefore policy makers and negotiators have focused in making concessions aimed to trade market access (i,e, reductions in import duties) and in ensuring fair competitions, i,e, putting disciplines in production and export subsidies. Therefore, even if export taxes and export restrictions are used by many countries - in 2004 Piermartini noted that approximately one-third of World Trade Organization (WTO) members impose export duties- they have been a much lower source of concerns for policy makers, trade negotiators and economists.
However, the effects of export taxes are various: the “terms-of-trade” effect (market power of key suppliers), consumer price (e.g. food security) or intermediate input price (industrial policy in favor of processed goods) reduction and/or stabilization, government revenue and income redistribution and this versatility has made them popular in many countries even if they create serious negative externalities for their trade partners. The recent years have been marked by a renewal of interests from the trade community on this issue. The 2007-2008 food price crisis (Bouet and Laborde 2010, Anderson and Martin 2011) has shed light on their dangerous consequences on food security in period of price hikes and export restrictions on key inputs, such as rare earths, has led to trade dispute between the European Union and China.
This paper, using a new detailed dataset, aims to address the impact of export restrictions on global welfare. The MIRAGE Computable General Equilibrium (CGE) model, which is multisectoral, multiregion, and dynamic, is used to investigate how global removal of export taxes affects global trade and real income of major trading blocks.
The limited analysis of export taxation under a global and multisectoral framework is largely due to the lack of data. In recent years, the MAcMapHS6 and G...

Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Created: Laborde, D. (4/26/2012)
Updated: Laborde, D. (4/26/2012)
Visits: 3,010
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