Sensitive Sectors in Free Trade Agreements
This paper documents the presence of "sensitive sectors" in Free Trade Agreements, defined as sectors for which the within-FTA tariffs remain positive. The paper includes some brief theoretical discussion of the welfare implications of these, but the main emphasis is on reporting two measu...
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| Format: | Article |
| Language: | English |
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Korea Institute for International Economic Policy
2018-12-01
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| Series: | East Asian Economic Review |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.11644/KIEP.EAER.2018.22.4.349 |
| _version_ | 1830300511959515136 |
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| author | Alan V. Deardorff |
| author_facet | Alan V. Deardorff |
| author_sort | Alan V. Deardorff |
| collection | DOAJ |
| description | This paper documents the presence of "sensitive sectors" in Free Trade Agreements, defined as sectors for which the within-FTA tariffs remain positive. The paper includes some brief theoretical discussion of the welfare implications of these, but the main emphasis is on reporting two measures of this phenomenon for countries in FTAs that entered into force between 1994 and 2003. One measure is the percentage of tariff lines that remain dutiable, and the second is the change, from before the FTA to after, in the average maximum (across 6-digit products) positive tariffs. Both measures are derived from data in the UNCTAD TRAINS database, and are then related to measures of country characteristics that might explain them. Low per capita GDP countries tend to have larger fractions of dutiable tariff lines, while higher income countries tend to post larger increases in average maximum positive tariffs. Both suggest that the favored treatment of sensitive sectors is undermining the potential gains from trade that FTAs could provide. |
| first_indexed | 2024-12-19T08:29:30Z |
| format | Article |
| id | doaj.art-3ecec0c58d784aa889c8dbd3b493d338 |
| institution | Directory Open Access Journal |
| issn | 2508-1640 2508-1667 |
| language | English |
| last_indexed | 2024-12-19T08:29:30Z |
| publishDate | 2018-12-01 |
| publisher | Korea Institute for International Economic Policy |
| record_format | Article |
| series | East Asian Economic Review |
| spelling | doaj.art-3ecec0c58d784aa889c8dbd3b493d3382022-12-21T20:29:13ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672018-12-01224403425http://dx.doi.org/10.11644/KIEP.EAER.2018.22.4.349Sensitive Sectors in Free Trade AgreementsAlan V. Deardorff0University of MichiganThis paper documents the presence of "sensitive sectors" in Free Trade Agreements, defined as sectors for which the within-FTA tariffs remain positive. The paper includes some brief theoretical discussion of the welfare implications of these, but the main emphasis is on reporting two measures of this phenomenon for countries in FTAs that entered into force between 1994 and 2003. One measure is the percentage of tariff lines that remain dutiable, and the second is the change, from before the FTA to after, in the average maximum (across 6-digit products) positive tariffs. Both measures are derived from data in the UNCTAD TRAINS database, and are then related to measures of country characteristics that might explain them. Low per capita GDP countries tend to have larger fractions of dutiable tariff lines, while higher income countries tend to post larger increases in average maximum positive tariffs. Both suggest that the favored treatment of sensitive sectors is undermining the potential gains from trade that FTAs could provide.http://dx.doi.org/10.11644/KIEP.EAER.2018.22.4.349 Free Trade AgreementsSensitive SectorsExempted SectorsTrade DiversionTariff Lines |
| spellingShingle | Alan V. Deardorff Sensitive Sectors in Free Trade Agreements East Asian Economic Review Free Trade Agreements Sensitive Sectors Exempted Sectors Trade Diversion Tariff Lines |
| title | Sensitive Sectors in Free Trade Agreements |
| title_full | Sensitive Sectors in Free Trade Agreements |
| title_fullStr | Sensitive Sectors in Free Trade Agreements |
| title_full_unstemmed | Sensitive Sectors in Free Trade Agreements |
| title_short | Sensitive Sectors in Free Trade Agreements |
| title_sort | sensitive sectors in free trade agreements |
| topic | Free Trade Agreements Sensitive Sectors Exempted Sectors Trade Diversion Tariff Lines |
| url | http://dx.doi.org/10.11644/KIEP.EAER.2018.22.4.349 |
| work_keys_str_mv | AT alanvdeardorff sensitivesectorsinfreetradeagreements |