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The Doha Round and Market Access for LDCs: Scenarios for the EU and US Markets

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  • de Melo, Jaime
  • Carrère, Céline
Abstract
LDCs hoped that the DOHA round would bring them greater market access in OECD countries than for non-LDCs. Using HS-6 tariff level data for the US and the EU for 2004, this paper estimates that, once the erosion from preferential access into the EU to non-LDCs is taken into account, LDCs have about a 3% preferential margin in the EU market. In the US market, in spite of preferences under AGOA, on a trade-weighted basis, LDCs are discriminated against. Under various ?Swiss formulas? for tariff cuts, effective market access for LDCs in the EU will be negligible and still negative in the US. If the US were to apply a 97% rule (i.e. duty-free, quota-free access for all but three percent of the tariff lines), LDCs could increase exports by 10% or about $1billion annually. Effective market access is further reduced by complicated Rules of Origin (RoO) applied by the EU and the US. Furthermore, generally, the most restrictive RoO fall on products in which LDCs have the greatest preferential market access.

Suggested Citation

  • de Melo, Jaime & Carrère, Céline, 2009. "The Doha Round and Market Access for LDCs: Scenarios for the EU and US Markets," CEPR Discussion Papers 7313, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:7313
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    1. Olivier Cadot & Antoni Estevadeordal & Akiko Suwa-Eisenmann & Thierry Verdier, 2006. "The Origin of Goods: Rules of Origin in Regional Trade Agreements," Post-Print halshs-00754856, HAL.
    2. Cadot, Olivier & Carrere, Celine & De Melo, Jaime & Tumurchudur, Bolormaa, 2006. "Product-specific rules of origin in EU and US preferential trading arrangements: an assessment," World Trade Review, Cambridge University Press, vol. 5(2), pages 199-224, July.
    3. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," The World Bank Economic Review, World Bank, vol. 20(2), pages 197-216.
    4. de Melo, Jaime & Carrère, Céline & Tumurchudur, Bolormaa, 2008. "Disentangling Market Access Effects for ASEAN Members Under an ASEAN-EU FTA," CEPR Discussion Papers 6762, C.E.P.R. Discussion Papers.
    5. Simon J. Evenett & Bernard M. Hoekman, 2006. "Economic Development and Multilateral Trade Cooperation," World Bank Publications - Books, The World Bank Group, number 7412.
    6. Céline Carrère & Jaime de Melo, 2015. "Are Different Rules of Origin Equally Costly? Estimates from NAFTA," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 12, pages 277-298, World Scientific Publishing Co. Pte. Ltd..
    7. Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank.
    8. Cadot, Olivier & Estevadeordal, Antoni & Suwa-Eisenmann, Akiko & Verdier, Thierry (ed.), 2006. "The Origin of Goods: Rules of Origin in Regional Trade Agreements," OUP Catalogue, Oxford University Press, number 9780199290482.
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    Cited by:

    1. Hoekman, Bernard & Martin, Will & Mattoo, Aaditya, 2010. "Conclude Doha: it matters!," World Trade Review, Cambridge University Press, vol. 9(3), pages 505-530, July.
    2. Flentø, Daniel & Ponte, Stefano, 2017. "Least-Developed Countries in a World of Global Value Chains: Are WTO Trade Negotiations Helping?," World Development, Elsevier, vol. 94(C), pages 366-374.
    3. Ito, Tadashi, 2013. "Did the least developed countries benefit from duty-free quota-free access to the Japanese market?," IDE Discussion Papers 434, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Ito, Tadashi & Aoyagi, Takahide, 2019. "Did the least developed countries benefit from duty-free quota-free access to the Japanese market?," Japan and the World Economy, Elsevier, vol. 49(C), pages 32-39.
    5. Oumar Diallo & Cheick S. Diarra & Kavazeua U. Katjomuise, 2020. "The Istanbul programme of action for the least developed countries: What does it add?," Development Policy Review, Overseas Development Institute, vol. 38(4), pages 521-537, July.

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    More about this item

    Keywords

    Ldcs; Market access; Rules of origin;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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