Trade Policy Implications of Global Value Chains: Case Studies

Sébastien Miroudot, Dorothée Rouzet and Francesca Spinelli
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Francesca Spinelli: OECD

No 161, OECD Trade Policy Papers from OECD Publishing

Abstract: Taking global value chains (GVCs) into account has important implications for trade policy. When production is vertically fragmented and trade in intermediate inputs is prevalent, one has to look differently at a certain number of issues. Through case studies, this paper provides new evidence on the incidence on services of tariffs levied on goods (case study 1) and then discusses effective rates of protection in a world of GVCs and what the removal of tariffs on intermediate inputs implies, using the example of Canada (case study 2). To illustrate how trade agreements could be made more relevant for GVCs, the paper further looks at sectoral approaches in trade negotiations through the example of the Information Technology Agreement (case study 3) and finally compares the network of regional trade agreements in force with global production networks (case study 4).

Keywords: cumulative tariffs; effective rates of protection; fragmentation of production; global value chains; network trade; regional trade agreements; trade in intermediate inputs; vertical specialization (search for similar items in EconPapers)
JEL-codes: F13 F14 F20 F23 (search for similar items in EconPapers)
Date: 2013-12-24
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (36)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:161-en

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