Recent WTO negotiations have revived interest in “market-access-for-development” packages that tie deeper tariff cuts in agriculture to flexibilities for low-income members. This paper develops a quantitative framework to evaluate whether such proposals can simultaneously expand trade, safeguard food security, and foster value-chain upgrading in developing countries.
Methodology:
Calibrating a partial-equilibrium model on bound and applied tariffs, ad-valorem equivalents of TRQs, and new data on trade costs for 46 agricultural products in 119 WTO members, we simulate three prominent market-access proposals:
(i) the G-33 call for Special Products and an expanded Special Safeguard Mechanism;
(ii) the Cairns Group formula for proportional tariff reductions with longer staging for LDCs; and
(iii) the EU–ACP initiative that consolidates preferences in exchange for tighter disciplines on export subsidies.
Findings:
We find that:
The G-33 option yields the smallest global welfare gains (US$5.2 billion) but preserves policy space for 90% of low-income members’ tariff lines;
The Cairns formula maximises export revenue for Latin American and African suppliers (+US$12.4 billion), yet erodes preference margins for ACP countries;
The EU–ACP hybrid strikes a balance, raising developing-country tariff revenues by 3% and cutting non-tariff distortions by one-third.
Sensitivity analysis:
Sensitivity analysis shows that the inclusion of an indexation clause for import surges and a plurilateral transparency mechanism for SPS measures is critical to prevent backsliding.
Conclusion:
We conclude that a development-oriented trading system must embed calibrated flexibilities rather than uniform liberalisation, and outline a rule-based architecture that links graduated market access to verifiable supply-side support.
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