Tariff aggregation and market access: an empirical assessment for Canada and the EU. (Special Issue: Agricultural policies in transition.)

摘要

We use two alternative approaches to analyze the trade restrictiveness of the Canadian and EU import tariff structures for agricultural goods. The first involves direct, detailed calculations at the tariff line level of summary protection indexes. We compare the newer method of welfare and import equivalent indexes to the standard trade weighted method of aggregation. The second approach involves indirect index calculations, where we map tariff data into a computable general equilibrium (CGE) model, and then use the model to generate the summary. Each approach has its advantages. The direct tariff line approach reflects sector detail more comprehensively, but misses the sector and regional linkages captured by the CGE model. As an empirical illustration we simulate the impact of market access liberalization proposed in the WTO draft modality paper of February 2008. Pursuant to a tiered formula, we reduce bound and applied tariffs at the 6-digit tariff line level. We find that the direct tariff line approach and the hybrid tariff line CGE approach yield similar results. These indicate that access to Canada's agricultural sector is particularly restricted for milk imports from high-income countries. In contrast, developing countries have particular difficulty accessing the EU's Single Market, where high trade restrictions on beef, sugar, and rice are most relevant.