Choosing Formulas for Market Access Negotiation: Efficiency and Market Access Considerations

32 Pages Posted: 3 Feb 2005

See all articles by Joseph F. Francois

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Will J. Martin

International Food Policy Research Institute (IFPRI)

Vlad Manole

Rutgers University, Department of Economics

Date Written: January 2005

Abstract

An important issue in multilateral trade negotiations is the approach taken to reduce tariffs. Francois, Martin, and Manole believe that there are important advantages in formula approaches and survey a range of options between the sharply top-down Swiss formula and proportional cuts in tariffs. Over the range the authors consider, they find that the economic efficiency impacts for the importer are not greatly influenced by the extent to which higher tariffs face bigger cuts. However, top-down approaches appear to be more effective in reducing tariff escalation, and provide greater market access gains to poor countries.

This paper - a product of the Trade Team, Development Research Group - is part of a larger effort in the group to understand the impact of trade policies on trade performance and development opportunities.

Keywords: market access, tariff formulas, WTO, tariff reductions

JEL Classification: F13, F1

Suggested Citation

Francois, Joseph F and Martin, William J. and Manole, Vlad, Choosing Formulas for Market Access Negotiation: Efficiency and Market Access Considerations (January 2005). World Bank Policy Research Working Paper No. 3474. Available at SSRN: https://ssrn.com/abstract=650163

Joseph F Francois (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

William J. Martin

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Vlad Manole

Rutgers University, Department of Economics ( email )

360 Martin Luther King Jr.
Newark, NJ 07102
United States

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