Schemes for aggregating preferential tariffs in agriculture,export volume effects and African LDCs

TY - UNPB

T1 - Schemes for aggregating preferential tariffs in agriculture,export volume effects and African LDCs

AU - Yu, Wusheng

PY - 2007

Y1 - 2007

N2 - Trade-weighted aggregated tariffs (TWPT) are often used in analyzing the issues oferosion of non-reciprocal preferences. This paper argues that commonly used TWPTsunder-estimate the true protection on imports originated from preference-receivingcountries, including LDCs. When used in numerical simulations of preference erosionand expansion scenarios, the TWPTs tend to incorrectly downplay preference erosioneffect of MFN tariff cuts, and understate the export promotion effect of expandingpreferences. In light of these claims, an alternative aggregation scheme is developedto calculate aggregated preferential tariffs imposed by a number of developed countrieson African LDCs. These are shown to be higher than the TWPTs aggregatedfrom the same disaggregated tariff data set. Numerical simulations conducted withthe two sets of aggregated tariffs confirm the two claims and suggest that TWPTs maylead to misleading policy implications concerning expanding preferences for theLDCs.*

AB - Trade-weighted aggregated tariffs (TWPT) are often used in analyzing the issues oferosion of non-reciprocal preferences. This paper argues that commonly used TWPTsunder-estimate the true protection on imports originated from preference-receivingcountries, including LDCs. When used in numerical simulations of preference erosionand expansion scenarios, the TWPTs tend to incorrectly downplay preference erosioneffect of MFN tariff cuts, and understate the export promotion effect of expandingpreferences. In light of these claims, an alternative aggregation scheme is developedto calculate aggregated preferential tariffs imposed by a number of developed countrieson African LDCs. These are shown to be higher than the TWPTs aggregatedfrom the same disaggregated tariff data set. Numerical simulations conducted withthe two sets of aggregated tariffs confirm the two claims and suggest that TWPTs maylead to misleading policy implications concerning expanding preferences for theLDCs.*

M3 - Working paper

SN - 978-87-92087-32-4

T3 - IFRO Working Paper

BT - Schemes for aggregating preferential tariffs in agriculture,export volume effects and African LDCs

PB - Fødevareøkonomisk Institut, Københavns Universitet

CY - Frederiksberg

ER -