The impact of comprehensive tariff reductions in multilateral trade: further results from computable general equilibrium simulations

Shamim Shakur () and Allan Rae ()
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Shamim Shakur: Massey University
Allan Rae: Massey University

Economics Bulletin, 2012, vol. 32, issue 1, 182-189

Abstract: Despite their welfare-improving properties, negotiations on tariff reductions remain a highly contentious issue. Using the GTAP general equilibrium approach, this paper identifies potential winners and losers from partial removal of remaining tariffs in disaggregated sectors. By considering alternative approaches to further liberalising trade in three broadly defined sectors (agriculture, textiles and manufacturing), the paper establishes empirically the clear superiority of a comprehensive trade reform package which encompasses all sectors and geographic regions. Trade negotiators at the currently deadlocked Doha Round should take note of this result as a possible means of breaking the impasse.

Keywords: tariffs; CGE model; Doha Round (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2012-01-13
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