Working Paper: NBER ID: w12971
Authors: Mary Amiti; John Romalis
Abstract: This paper assesses the effects of reducing tariffs under the Doha Round on market access for developing countries. It shows that for many developing countries, actual preferential access is less generous than it appears because of low product coverage or complex rules of origin. Thus lowering tariffs under the multilateral system is likely to lead to a net increase in market access for many developing countries, with gains in market access offsetting losses from preference erosion. Furthermore, comparing various tariff-cutting proposals, the research shows that the largest gains in market access are generated by higher tariff cuts in agriculture.
Keywords: No keywords provided
JEL Codes: F13; F14; F17
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tariff reductions under the Doha Round (F13) | Market access for developing countries (F63) |
| 40% tariff cut in the US and EU (F19) | Average increase in import demand across all countries (F69) |
| 40% tariff cut in the US and EU (F19) | 85% increase in demand for non-African LDCs (O55) |
| Preference erosion (D11) | Gains in market access from lower MFN tariffs (F13) |
| Higher than 40% tariff cut in agriculture (Q17) | Largest gains for all groups of countries (O57) |