More Pain, More Gain: Politics and Economics of Eliminating Tariffs

Gary Hufbauer and Ben Goodrich (bgoodrich@piie.com)
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Ben Goodrich: Peterson Institute for International Economics

No PB03-08, Policy Briefs from Peterson Institute for International Economics

Abstract: In November 2002, the United States proposed that members of the World Trade Organization (WTO) eliminate their tariffs on nonagricultural products. World exports of nonagricultural goods, which were $5.4 trillion in 2001 (WTO 2002), would substantially expand if the US proposal were adopted. In percentage terms, some of the largest gains would come in trade between developing countries--South-South trade--simply because high tariffs severely restrict it. The United States offered the following initial proposal:

Date: 2003-06
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