Post-Doha Trade Policy Options for a Small Country

Alan Deardorff

No 609, Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: This paper uses a partial equilibrium model of two small countries, within a large world economy, implementing reciprocal tariff cuts on each otherÕs exports in a regional trade agreement (RTA) and compares the effects with unilateral most-favored-nation (MFN) tariff cuts. The reciprocal cuts are shown to be more likely beneficial to a country the larger is the partner countryÕs trade. The welfare effects of a countryÕs own tariff cut on imports are also compared to the effects on its welfare of the partner-countryÕs tariff cut on its exports. If tariff levels are low, the latter is seen to be larger than the former. Implications of the analysis are that, if multilateral trade liberalization is unlikely, then small countries should seek to form RTAs with countries larger than themselves. In addition, to assure that they have something to offer in such arrangements, they should not go too far in unilaterally reducing their MFN tariffs.

Keywords: Regional trade agreements; Free trade agreements (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-06-15
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.fordschool.umich.edu/rsie/workingpapers/Papers576-600/r609.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fordschool.umich.edu/rsie/workingpapers/Papers576-600/r609.pdf [301 Moved Permanently]--> https://www.fordschool.umich.edu/rsie/workingpapers/Papers576-600/r609.pdf [302 Found]--> https://fordschool.umich.edu/rsie/workingpapers/Papers576-600/r609.pdf)

Related works:
Journal Article: Post-Doha Trade Policy Options for a Small Country (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mie:wpaper:609

Access Statistics for this paper

More papers in Working Papers from Research Seminar in International Economics, University of Michigan Contact information at EDIRC.
Bibliographic data for series maintained by FSPP Webmaster ().