Is Erosion of Tariff Preferences a Serious Concern?
This working paper aims to clarify the specific issues raised by trade preferences, in particular non-reciprocal ones, as they pertain to the Doha round. We evaluate the extent of tariff preferences through both a measure of the "true" preferential margin and an assessment of tariff-rate quota rents. We find that the threat of preference erosion following the Doha round is real, insofar as trade preferences are now playing a key role in the world trading system, and in particular in the pro-poor policies undertaken by rich countries. Although the problem is focused on a handful of products and on a limited number of countries, our analysis suggests that the magnitude of forthcoming difficulties for poor countries could be significant in many cases.
Preferential trade arrangements (PTAs); erosion; Doha development agenda; Computable General Equilibirum (CGE) model; international trade; trade negotiations; WTO; agriculture; trade policy
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