Commercial Policy Uncertainty, the Expected Cost of Protection, and Market Access
Protection unconstrained by rules often varies substantially over time. Rules-based disciplines like OECD industrial tariff bindings negotiated under GATT since 1947 and new Uruguay Round bindings on agricultural and services trade and on developing country industrial tariffs, constrain this variability. We examine the theoretical effects of such constraints on the expected cost of protection and offer a formalization of the concept of "market access," emphasizing both the first and second moments of the distribution of protection. As an illustration, we provide a stylized examination of Uruguay Round agricultural bindings.
|Keywords||WTO, commercial policy uncertainty, expected costs of protection, market access, tariff bindings|
François, J.F., & Martin, W.. (1998). Commercial Policy Uncertainty, the Expected Cost of Protection, and Market Access (No. TI 98-059/2). Retrieved from http://hdl.handle.net/1765/7752