International audienceThis paper presents MAcMap-HS-6, a database providing a consistent, ad valorem equivalent measure of tariff duties and tariff rate quotas for 163 countries and 208 partners, at the six-digit level of the Harmonized System (5111 products), accounting for all preferential agreements.We describe the methodology used to compute and aggregate an ad valorem equivalent of applied protection. Emphasis is placed on minimizing the endogeneity bias in the aggregation procedure, while acknowledging structural differences in export specialization.The resulting quantitative assessment is illustrated by giving an overview of applied protection across the world in 2001, in terms of average as well as distribution
Another contribution is the data for agriculture in OECD countries. Here we built on existing work on the modeling of agricultural policy (Frandsen, Gerfeldt and Jensen; Burfisher, Robinson and Thierfelder) and we developed a precise representation of EU, US, Canadian and Japanese farm support. Information on farm policies at a very detailed level is used so as to take into account the actual effect of each payment.The baseline is a somewhat fictitious situation, where we assume that the EU enlargement has taken place, and that the EU and US recent changes in farm policies are fully implemented. The trade shock is the draft compromise of March 2003 (known as the "revised Harbinson proposal").The application of this compromise improves access only in some markets and for some exporting zones. It depends on the extent by which trade preferences have been granted, and on the binding overhang phenomenon. It is also affected by the structure of bilateral trade and by the Special and Differentiated Treatment. For example, due to a large difference between bound and MFN applied duties, EFTA's protection is not greatly reduced. The European market access is hugely improved for the Cairns group, USA and Japan, but less so for subSaharan Africa.The induced variation of exports reflects these asymmetries. World prices are augmented, especially for rice and cotton. Welfare increases for countries which reduces border protection and cut export subsidies and domestic support, namely for the European Union, Japan and the USA. The picture is much more contrasted for developing countries; Mediterranean countries and the subSahara African zone are negatively affected, due either to a deterioration of terms of trade or an erosion of preferential margins.Thus our results suggest that African countries which benefit from preferential access to the EU and the US will face heightened competition from Cairns group countries. Overall, subSaharan countries will experience a decrease in welfare, even under our optimistic assumption that US and EU cotton and tobacco subsidies will be reduced by a large amount.
An applied general equilibrium model is used to assess the impact of multilateral trade liberalisation in agriculture, with particular emphasis on developing countries. We use original data, and the model includes some specific features such as a dual labour market. Applied tariffs, including those under preferential regimes and regional agreements, are taken into account at the detailed product level, together with the corresponding bound tariffs on which countries negotiate. The various types of farm support are detailed, and several groups of developing countries are distinguished. Simulations give a contrasted picture of the benefits developing countries would draw from the Doha development round. The results suggest that previous studies have neglected preferential agreements and the binding overhang (in tariffs as well as domestic support), and have treated developing countries with a high level of aggregation and been excessively optimistic about the actual benefits of multilateral trade liberalisation. Regions like sub-Saharan Africa are more likely to suffer from the erosion of existing preferences. The main gainers of the Doha Round are likely to be developed countries and Cairns Group members. Copyright Blackwell Publishing Ltd 2005.
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