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GTAP Resource #5809

"Integrating Tariff-Rate Quotas into the Modeling of Trade Agreements - a Simple Approach"
by Döbeling, Tatjana and Janine Pelikan


Abstract
The usage of tariff-rate quotas (TRQs) in these trade agreements became increasingly popular in recent years: According to the TARIC database, the first TRQ in a regional trade agreement of the EU was introduced in 2005. Until 2017, the number of active preferential TRQs rose to 39, followed by a sharp increase to 155 active preferential TRQs in 2018. Also the number of non-preferential TRQs that are open to all countries rose within the last 15 years to an amount of 158 in 2018. Despite a usually limited number of TRQs per trade agreement, they often have a strong effect on the market access of whole sectors, as they are usually only used for sensitive goods.
For CGE analyses, the challenge in modelling TRQs is especially their narrow definition that is limited to a few tariff lines. Several studies that assessed the effects of TRQs therefore built up entirely own models for specific sectors. When trade agreements are analyzed, the focus is not always TRQs, so building up such elaborate models is too effortful for many cases of application. Thus, we develop an MCP model that returns ad valorem equivalents of TRQs and makes them easy to incorporate in tariff reduction analysis and CGE models.


Resource Details (Export Citation) GTAP Keywords
Category: 2019 Conference Paper
Status: Published
By/In: Presented at the 22nd Annual Conference on Global Economic Analysis, Warsaw, Poland
Date: 2019
Version:
Created: Döbeling, T. (4/15/2019)
Updated: Döbeling, T. (7/30/2019)
Visits: 569
- Non-Tariff barriers
- Preferential trading arrangements


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