GTAP Resources: Resource Display
| GTAP Resource #7305 |
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"A new mechanism for trade agreement to revitalize the Global Value Chains" by Jaiswal, Himanshu and Anand Ganesh-Kumar Abstract The import tariff system has made a harmful dent on the global trading system. To avoid this, many countries have chosen the second-best option- ‘an FTA’; because the first-best where there is no tariff at all in the global trading system is close to impossible to achieve. FTAs due to their structural factors like, stringent Rules of Origin and other non-tariff measures have not been very successful. Also, they have been labelled as discriminatory to non-partner countries. Despite having a potential of establishing and strengthening the Global value chains, FTAs have done a dismal work in this dimension too. To overcome this limitation, we propose in this article a new mechanism called ‘Sectoral Trade Agreement (STA)’ which is an FTA among all major producing countries in a particular sector or industry. An STA in automobile sector will be compared with the traditional bilateral FTA with different utilization rate. In our CGE based study, Welfare as a total rises in STA in comparison to FTA scenarios and this is increasing for some non-participating blocks also. It is also shown here how a composite scenario where both FTA and STA are functioning is a better option for trade liberalization and how this is a new ’second-best’. |
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- GTAP Data Base and extensions - Multilateral trade negotiations - Non-Tariff barriers - Preferential trading arrangements - Supply chains |
| Attachments |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  Paper (334.1 KB) Replicated: 3 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
