Abstract
Trade negotiations deal with cuts in bound duties, which differ substantially from applied preferential duties, and from MFN applied duties. Based on WTO’s Consolidated Tariff Schedules (CTS) database and on national sources, this paper proposes a systematic assessment of ad valorem-equivalent bound duties at the detailed product level, for almost all WTO members. Fully consistent with the assessment of applied protection provided in the MAcMap-HS6 database, this work allows the full structure of protection—bound, MFN applied, preferential applied duties—to be accurately assessed. We thus provide the first worldwide assessment of the binding overhang, i.e. the gap between bound and applied MFN tariffs. We also assess the likely applied-protection impact of an agreement in the Doha Round.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Anderson, K., and W. Martin (eds.) (2006). Agricultural Trade Reform and the Doha Development Agenda. Basingstoke: Palgrave Macmillan.
Bacchetta, M., and B. Bora (2001). Post–Uruguay Round Market Access Barriers for Industrial Products. Policy Issues in International Trade and Commodities, Study Series No. 1. Geneva: UNCTAD.
Bacchetta, M., and B. Bora (2003). Industrial Tariff Liberalization and the Doha Development Agenda. WTO Discussion Papers 1. World Trade Organization, Geneva.
Bchir, M. H., L. Fontagné, and S. Jean (2005). From Bound Duties to Actual Protection: Industrial Liberalisation in the Doha Round. CEPII Working Paper 2005-12. Paris.
Bouët, A., Y. Decreux, L. Fontagné, S. Jean, and D. Laborde (2004). A Consistent, Ad-Valorem Equivalent Measure of Applied Protection across the World : The MAcMap-HS6 Database. CEPII Working Paper 2004-22. Paris.
Bouët A., J.-C. Bureau, Y. Decreux, and S. Jean (2005). Multilateral Agricultural Trade Liberalisation: The Contrasting Fortunes of Developing Countries in the Doha Round. World Economy 28 (9): 1329–1354.
Francois, J., and W. Martin (2003). Formula Approaches for Market Access Negotiations. World Economy 26 (1): 1–28.
Francois, J., and W. Martin (2004). Commercial Policy Variability, Bindings, and Market Access. European Economic Review 48 (3): 665–679.
Fry, J. M., P. A. Jomini, and A. Strzelecki (2004). The Integrated Tariff Analysis System. Productivity Commission Research Memorandum. Cat No: GA 513, June. Productivity Commission, Canberra.
Gaulier, G., and S. Zignago (2004). Notes on BACI. Analytical Database of International Trade, 1995-2002 Version. Mimeo, available at http://www.cepii.fr/anglaisgraph/bdd/baci/baci.pdf.
Gibson, P., J. Wainio, D. M. Whitley, and M. Bohman (2001). Profiles of Tariffs in Global Agricultural Markets. Economic Research Service, USDA, Agricultural Economic Report Number 796, January.
Hathaway, D., and M. Ingco (1996). Agricultural Liberalization under the Uruguay Round. In W. Martin and A. Winters (eds.), The Uruguay Round and the Developing Economies. New York: Cambridge University Press.
Hertel, T. W., and L. A. Winters (eds.) (2005). Putting Development Back into the Doha Agenda: Poverty Impacts of a WTO Agreement. Basingstoke: Palgrave Macmillan.
Ingco, M. (1996). How Much Trade Liberalization Was Achieved under the Uruguay Round. World Economy 19 (4): 425–446.
Jean, S., D. Laborde, and W. Martin (2006). Consequences of Agricultural Tariff Cuts Using Alternative Formulas. In K. Anderson and W. Martin (eds.), Agricultural Trade Reform and the Doha Development Agenda. Basingstoke: Palgrave Macmillan.
Josling, T., and S. Tangermann (1994). The Significance of Tariffication in the Uruguay Round Agreement on Agriculture. Paper Presented to the North American Agricultural Policy Research Consortium Workshop on Canadian Agricultural Policy, San Diego.
Laborde, D. (2005). Coalitions in the WTO Arena. Paper presented at the 2005 Conference on Global Economic Analysis, Lübeck, June 9–11. See www.gtap.org.
Martin, W. (2004). Market Access in Agriculture—Beyond the Blender. Trade Note No. 16, Washington, D.C.: World Bank.
Martin, W., and Z. Wang (2004). Improving Market Access in Agriculture. Washington, D.C.: World Bank.
Wainio J. (2005). Market Access: Tariffication and Tariff Reduction. WTO Briefing Rooms, Economic Research Service, USDA, available at http://www.ers.usda.gov/Briefing/WTO/tariffs.htm.
Walkenhorst, P., and N. Dihel (2003). Tariff Bindings, Unused Protection, and Agricultural Trade Liberalisation. OECD Economic Studies 36 (1): 231–249.
World Bank (2003). Global Economic Prospects 2004. Realizing the Development Promise of the Doha Agenda. Washington, D.C.: World Bank.
World Bank (2004). Global Economic Prospects 2005. Trade, Regionalism and Development. Washington, D.C.: World Bank.
WTO (World Trade Organisation) (2001). Consolidated Tariff Schedule. See www.wto.org.
WTO (World Trade Organisation) (2003a). Negotiations on Agriculture. First Draft of Modalities for the Further Commitments. Committee on Agriculture. Ref. TN/AG/W/1, WTO, February. Geneva.
WTO (World Trade Organisation) (2003b). Draft Elements of Modalities for Negotiations on Non-Agricultural Products–Revision. Paper for the Negotiating Group on Market Access, Ref. TN/MA/W/35/Rev.1, http://docsonline.wto.org, 19 August, Geneva (revised Girard Proposal).
WTO (World Trade Organisation) (2003c). Incidence of Non–Ad Valorem Tariffs in Members’ Tariff Schedules and Possible Approaches to the Estimation of Ad Valorem Equivalents. Note by the Secretariat, WTO, TN/MA/S/10, May. Geneva.
WTO (World Trade Organisation) (2004). Doha Work Program: Decision Adopted by the General Council on 1 August 2004, WT/L/579. Geneva: WTO.
Author information
Authors and Affiliations
Corresponding author
Additional information
JEL no.
F13
About this article
Cite this article
Bchir, M., Jean, S. & Laborde, D. Binding Overhang and Tariff-Cutting Formulas. Rev. World Econ. 142, 207–232 (2006). https://doi.org/10.1007/s10290-006-0065-9
Issue Date:
DOI: https://doi.org/10.1007/s10290-006-0065-9