Market Access and Welfare Effects of Piecemeal Policy Reform
18 Pages Posted: 11 Jun 2000 Last revised: 14 Sep 2022
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Welfare and Market Access Effects of Piecemeal Tariff Reform
Date Written: November 1997
Abstract
In a situation where tariff reforms are being negotiated between two parties aims to raise its exports and the other aims to raise its welfare, tariff cuts must be in the interest" of at least one party. It is possible for the interests of the two sides to conflict. Conflict is certain" if the excess demand for exported goods does not respond to changes in the prices of imported" goods. In this case, any policy which raises imports must also reduce welfare."
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