RESEARCH AND ANALYSIS: WORKING PAPERS

Trade in Tasks, Tariff Policy and Effective Protection Rates

Albeit nominal tariffs have been decreasing in the past decades, the rise of global manufacturing along global value chains lead to their accumulation along the international supply chain. The calculation of effective protection rates provides important insights on the impact of nominal protection on the international competitiveness of industries in a trade in tasks perspective.

Building on the results of the OECD-WTO Trade in Value-Added TiVA database, the paper analyses the evolution of effective protection in about 50 developed and developing countries from 1995 to 2008. The paper reviews also the role of preferential agreements on effective protection as well as the impact of tariffs on the production costs of services. A final chapter is dedicated to exploring the underlying patterns that may exist beyond the EPR profiles.

 

No: ERSD-2014-22

Authors: Antonia Diakantoni and Hubert Escaith

Manuscript date: December 2014

Key Words:

Tariff, Effective Protection, Trade in Value Added, International Outsourcing and Competitiveness.

JEL classification numbers:

C38, C67, D24, F13, F23, F60, O19

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Disclaimer 

This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its authors. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members’ rights and obligations under the WTO. Any errors are attributable to the authors.

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