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GTAP Resources: Resource Display

GTAP Resource #4458

"Utilization of preferential tariffs"
by Mimouni, Mondher, Xavier Pichot and Badri Narayanan

While there has been a proliferation of Free Trade Agreements (FTAs) and Preferential Tariff Agreements (PTAs) across the world, very few of them are implemented as agreed upon. In many cases, even after agreements and initial implementation, the preferential tariffs are just not utilized enough. We employ a unique transaction-level data, for the United States and European Union on the utilization of preferential tariffs in this paper to illustrate the importance to take into account the utilization of preferential tariffs. Based on this dataset, we calculate the tariffs implied by the lack of complete utilization of preferential tariffs first at the HS6 level and then extend it to the GTAP sectoral level. We undertake some comparisons between this dataset and the original tariff rates in GTAP Data Base, which reflect complete utilization. Then, we run a counterfactual simulation of increasing the tariffs from the levels seen in GTAP Data Base to those calculated using actual rates of utilization of preferential tariffs, using the standard GTAP model. Economy-wide results are analyzed and conclusions are made on the welfare implications of incomplete vis-à-vis complete utilization of preferential tariffs.

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Mimouni, M. (4/15/2014)
Updated: Mimouni, M. (4/15/2014)
Visits: 1,732
- Agricultural policies
- Preferential trading arrangements
- The GTAP Data Base and extensions
- Asia (East)
- European Union

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