GTAP Resources: Resource Display
GTAP Resource #3031 |
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"The Joint Impact of Specific Tariffs and Preferential Trade Agreements: Do Low Income Countries gain or lose?" by Chowdhury, Sohini Abstract My paper attempts to measure the distortionary effects of specific tariffs in agriculture, in the presence of Preferential Trade Agreements (PTAs). The goal is to analyze whether the preferential trade benefits extended to Low Income Countries (LICs) result in ‘real’ gains in market access and welfare for LICs, or whether they simply neutralize the losses from specific tariffs faced by LICs on account of their lower export prices. The results from my analysis indicate the latter, implying that specific tariffs in agriculture completely erode away the welfare and market access benefits accruing to LICs from preferential tariffs in agriculture. This calls for a shift in focus in future WTO ministerial meetings; with greater emphasis on converting specific tariffs in agriculture into advalorem tariffs rather than on increasing preferential treatments to LICs. |
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- Agricultural policies - Asia (East) |
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Last Modified: 9/15/2023 2:05:45 PM