Trade in Tasks, Tariff Policy and Effective Protection Rates

38 Pages Posted: 8 Jan 2015

See all articles by Antonia Diakantoni

Antonia Diakantoni

Trade Policies Review Division - World Trade Organization (WTO)

Hubert Escaith

Independent; World Trade Organization (WTO)

Date Written: December 15, 2014

Abstract

Albeit nominal tariffs have been decreasing in the past decades, the rise of global manufacturing along global value chains lead to their accumulation along the international supply chain. From a "trade in tasks" perspective, Effective Protection Rates provide important insights on the impact of tariffs on the international competitiveness of national industries. Using the OECD-WTO Trade in Value-Added TiVA database, we analyse the evolution of effective protection in about 50 developed and developing countries from 1995 to 2008, including the role of preferential agreements on EPRs as well as the impact of tariffs on the production cost of services. A final chapter explores the existence of underlying economic factors that may stand behind EPR profiles.

Keywords: International Trade, Tariff Policy, Effective Protection, Input-Output, Trade in Value Added, International Outsourcing, Competitiveness

JEL Classification: C38, C67, D24, F13, F23, F60, O19

Suggested Citation

Diakantoni, Antonia and Escaith, Hubert, Trade in Tasks, Tariff Policy and Effective Protection Rates (December 15, 2014). Available at SSRN: https://ssrn.com/abstract=2541676 or http://dx.doi.org/10.2139/ssrn.2541676

Antonia Diakantoni

Trade Policies Review Division - World Trade Organization (WTO) ( email )

Rue de Lausanne 154
Geneva 21, CH-1211
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+41 22 739 5857 (Phone)

World Trade Organization (WTO) ( email )

154 Rue de Lausanne
CH-1211 Geneva 21
Switzerland
+417395426 (Phone)

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