The WTO, Developing Countries, and the Doha Development Agenda: Prospects and Challenges for Trade-Led Growth

340 Pages·2004·2.75 MB·English

by  Guha-Khasnobis B. (ed.)

The WTO, Developing
Countries and the Doha
Development Agenda
Prospects and Challenges for Trade-Led Growth
Edited by
Basudeb Guha-Khasnobis
Studies in Development Economics and Policy
General Editor: Anthony Shorrocks
UNU WORLD INSTITUTE FOR DEVELOPMENT ECONOMICS RESEARCH (UNU-
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training centre and started work in Helsinki, Finland, in 1985. The purpose of
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UNU World Institute for Development Economics Research (UNU-WIDER)
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Titles include:
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FROM CAPITAL SURGES TO DROUGHT
Seeking Stability for Emerging Economies
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THE WTO, DEVELOPING COUNTRIES AND THE DOHA DEVELOPMENT
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Aiguo Lu and Manuel F. Montes (editors)
POVERTY, INCOME DISTRIBUTION AND WELL-BEING IN ASIA DURING THE
TRANSITION
Robert J. McIntyre and Bruno Dallago (editors)
SMALL AND MEDIUM ENTERPRISES IN TRANSITIONAL ECONOMIES
Vladimir Mikhalev (editor)
INEQUALITY AND SOCIAL STRUCTURE DURING THE TRANSITION
E. Wayne Nafziger and Raimo Väyrynen (editors)
THE PREVENTION OF HUMANITARIAN EMERGENCIES
Matthew Odedokun (editor)
EXTERNAL FINANCE FOR PRIVATE SECTOR DEVELOPMENT
Appraisals and Issues
Laixiang Sun (editor)
OWNERSHIP AND GOVERNANCE OF ENTERPRISES
Recent Innovative Developments
Studies in Development Economics and Policy
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The WTO, Developing
Countries and the Doha
Development Agenda
Prospects and Challenges for Trade-Led
Growth
Edited by
Basudeb Guha-Khasnobis
in association with the United Nations
University – World Institute for
Development Economics Research
©United Nations University 2004
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ISBN 1–4039–3483–5
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Library of Congress Cataloging-in-Publication Data
The WTO, developing countries and the Doha development agenda :
prospects and challenges for trade-led growth/edited by Basudeb
Guha-Khasnobis.
p. cm. — (Studies in development economics and policy)
Includes bibliographical references and index.
ISBN 1–4039–3483–5 (cloth)
1. World Trade Organization—Developing countries. 2. Free
trade—Developing countries. 3. International trade—Developing
countries. 4. Developing countries—Commercial policy. 5. Developing
countries—Economic policy. I. Title: World Trade Organization,
developing countries and the Doha development agenda.
II. Guha-Khasnobis, Basudeb. III. Series.
HF1385.W7833 2004
382′.92′091724—dc22 2003070729
10 9 8 7 6 5 4 3 2 1
13 12 11 10 09 08 07 06 05 04
Printed and bound in Great Britain by
Antony Rowe Ltd, Chippenham and Eastbourne
Contents
List of Tables vii
List of Figures and Box xi
Foreword xii
Acknowledgements xiii
List of Abbreviations xiv
Notes on the Contributors xvii
Part I Overview
1 The WTO, Trade and Development: An Introduction 3
Basudeb Guha-Khasnobis
2 Developing Countries and the WTO Doha Round:
Market Access, Rules and Differential Treatment 10
Bernard Hoekman
Part II Agriculture
3 Trade Liberalization, Agriculture and Poverty in
Low-Income Countries 37
Kym Anderson
4 OECD Domestic Support and Developing Countries 63
Betina Dimaranan,Thomas Hertel and Roman Keeney
5 Impact of Trade Liberalization on Returns from Land:
A Regional Study of Indian Agriculture 92
Nilabja Ghosh
6 The Value of Agricultural Tariff Rate Quotas to
Developing Countries 130
Cathie Laroche Dupraz and Alan Matthews
v
vi Contents
Part III Manufacturing
7 Industrial Tariffs, LDCs and the Doha Development Agenda 161
Marc Bacchetta and Bijit Bora
8 Developed-Country Trade Barriers and the
LDCs: The Economic Results of Freeing Trade 190
Jon D. Haveman and Howard J. Shatz
9 The EU Everything But Arms Initiative and the LDCs 219
Lucian Cernat,Sam Laird,Luca Monge-Roffarello and
Alessandro Turrini
10 Export Subsidies: Theory, Evidence and the
WTO Agreement on Subsidies 261
Rajeev Ahuja
Index 287
List of Tables
2.1 Illustration of possible national priorities in
different types of countries 13
2.2 Average unweighted tariff rates, by region, 1978–99 14
2.3 Frequency of core NTBs in developing countries, 1989–98 14
2.4 Trade shares of products affected by agricultural
subsidies, 1995–98 17
2.5 Anti-dumping initiations per US dollar of
imports, 1995–99 20
3.1 Average tariff equivalents of import market-
access barriers to goods trade, by source and
destination region, 1995 39
3.2 Sectoral and regional contributions to economic
welfare gains from completely removing trade
barriers globally, post-Uruguay Round, 2005 41
3.3 Percentage difference in sectoral output when all
merchandise trade distortions remaining
post-Uruguay Round are removed, 2005 43
3.4 Changes in sectoral trade balances when all
merchandise trade distortions remaining
post-Uruguay Round are removed, 2005 44
4.1 Producer support estimates and components,
1987 and 2000 65
4.2 Regional and sectoral aggregation 66
4.3 Trade specialization indices: (X−M)/(X+M) 68
4.4 Share of developing-country trade with OECD, 1997 71
4.5 Experimental design 76
4.6 Implications of 50 per cent reduction in market price
support for EU15 wheat, with re-instrumentation 78
4.7 Developing region welfare: EU15 wheat market price
support reform 79
4.8 Change in average world prices due to comprehensive
OECD domestic support reform 82
4.9 Developing region welfare changes: domestic
support reform 83
vii
viii List of Tables
4.10 World price effects of comprehensive 50 per cent
market price support reductions for OECD agriculture,
coupled with re-instrumentation 85
4.11 Developing region welfare changes: OECD
re-instrumentation of agricultural support 86
5.1 Policy transition in rice market, 1991–2002 95
5.2 Estimates of net protection coefficients of
rice in India, 1980–81 to 1992–98 96
5.3 Nutrient content, share in nutrient supply in
country and policy scenario for fertilizers 100
5.4 Fertilizer import statistics, by ports, 1998–99 101
5.5 Rice (non-basmati) export statistics, by ports, 1998–99 102
5.6 Export of (non-basmati) rice from selected ports in
India, 1991–2001 103
5.7 Calculation of fertilizer import price (all-India)
and an estimate of protection 110
5.8 Calculation of farmgate export price and an
estimate of protection of rice 113
5.9 Returns from paddy cultivation valued at prevailing
and external prices 114
5A.1 Cost of cultivation of rice per hectare 123
5A.2 Fertilizer nutrient consumption and prices, by states 124
5A.3 Parameters underlying calculation of returns 125
5A.4 Estimated regression equation for fertilizer use,
for yield adjustment 126
5A.5 Gains in returns at external prices from paddy
cultivation estimated with alternative cost concepts 126
5A.6 Gains in returns at external prices from paddy
cultivation: districts of Andhra Pradesh 127
6.1 Welfare gains for exporters due to the
implementation of the TRQ 139
6.2 Relative importance of TRQ products and
TRQ imports, by main commodity, average 1997–99 142
6.3 Usage of EU TRQs, by country grouping,
average 1997–99 143
6.4 Preference margin on EU TRQ trade, average 1997–99 144
6.5 Rent created in EU TRQs, average 1997–99 146
6.6 Division of rents, by TRQ import arrangement 147
6.7 Value of rent estimated to accrue to developing
countries on EU TRQ trade, average 1997–99 148
6.8 Average export prices, average 1997–99 150
List of Tables ix
7.1 Bound tariffs on industrial products: scope of bindings,
simple averages, standard deviations and tariff peaks 165
7.2 Bound tariffs on industrial products: simple averages,
by country and MTN category 168
7.3 Bound tariffs on industrial products: tariff peaks (share
of tariff lines above 15%, by country and MTN category) 169
7.4 Bound tariffs on industrial products: scope of bindings,
by country and MTN category 171
7.5 Distribution of binding coverage in Africa, Asia and
Latin America 172
7.6 Applied tariffs on industrial products: simple averages,
by country and MTN category 173
7.7 Applied tariffs on industrial products: tarrif peaks
(share of tarrif lines above 15%, by country
and MTN category) 174
7.8 Applied average tariffs on live, fresh, chilled or frozen
crustaceans and prepared or preserved crustaceans 176
7.9 Tariffs on leather, leather clothing accessories
and leather footwear 177
7.10 Tariff escalation on textile products: applied tariffs on
textiles and clothing products 179
7.11 Duty-free imports into developed countries from
developing countries and LDCs, 1996–2001 181
7.12 Pattern of MFN and preferential tariffs facing LDC
exports of fish and fish products in selected markets 183
8.1 US and EU preference programmes 191
8.2 Eligible countries for US preferences programmes 196
8.3 Trade performance under the Caribbean programmes 201
8.4 Trade performance under the Andean Trade
Preferences Act, 1991 and 2001 203
8.5 Trade performance under the African Growth and
Opportunity Act, 2000 and 2001 204
8.6 Summary of tariff effects on Triad trade 208
8.7 Triad LDC imports and preferences programmes
in force, 2000 209
8.8 Changes in Triad imports from LDCs as a result of
eliminating all tariffs on LDC exports, 2000 212
9.1 European Union: major imports from LDCs, 2000 221
9.2 Selected LDC exports facing tariffs in the European Union,
by major product category, 2000 223
9.3 EBA: the distribution of liberalized products, by sectors 224