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Abstract

Development objectives dictate that the Doha negotiations address tariff escalation. This could increase the production and export of processed goods in developing countries, expand investment and employment, and reduce dependence on primary product exports. Despite its importance, little progress has been made, notwithstanding that a final resolution to the negotiations will not be possible without bringing this issue to resolution. This paper quantifies tariff escalation within WTO members' tariff schedules and the degree to which a tiered formula could address this problem. Utilizing a detailed partial equilibrium global agricultural trade model we estimate the possible gains to developing countries from reducing tariff escalation.

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