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1、21-6 The Unappreciated TrendToward Unilateral Trade LiberalizationINTRODUCTIONA frequently voiced complaint from the trade specialists in the Trump administration was that US firms have faced a competitive disadvantage in exports because the US market is open and US tariffs are low but US trading pa

2、rtners protect their markets with high tariffs. One example cited often was that the United States applies q 2.5 percent tariff on automobile imports, whereas Canada charges 10 percent, China 15 percent, and India 125 percent. See A ringing defense of Trump on trade, Harvard Gazette, See A ringing d

3、efense of Trump on trade, Harvard Gazette, April 26, 2019.A frequently voiced complaint from the trade specialists in the Trump administration was that US firms have faced a competitive disadvantage in exports because the US market is open and US tariffs are low but US trading partners protect their

4、 markets with high tariffs. One example cited often was that the United States applies q 2.5 percent tariff on automobile imports, whereas Canada charges 10 percent, China 15 percent, and India 125 percent. See A ringing defense of Trump on trade, Harvard Gazette, April 26, 2019. The Trump administr

5、ation used this concern to justify raising US tariffs whenever it could. Actually, the Trump administration tended to cherry-pick their examples. For instance, President Trump pointed to Canadas 250 percent tariff on dairy products but not the US tariff of 187 See A ringing defense of Trump on trade

6、, Harvard Gazette, April 26, 2019. Actually, the Trump administration tended to cherry-pick their examples. For instance, PresidentTrump pointed to Canadas 250 percent tariff on dairy products but not the US tariff of 187percent on sour cream.1750 Massachusetts Avenue, NW | Washington, DC 20036-1903

7、 USA | +1.202.328.9000 | Many developing countries have reduced their tariffs unilaterally to rates that are far lower than they applied three decades ago and far less than the bound rates reflected in their World Trade Organization (WTO) obligations. Their attachment to their applied rates could be

8、 seen when on average global tariffs were not raised during the global financial crisis in 2008一and continued to decline through at least 2018. Even when shocks from imports resulted in serious injury to domestic industries, several developing countries temporarily provided safeguard protection but

9、at levels that were lower than their WTO bound rates.more self-sufficient (Ropoza 2020). However; see Subramanian (2020) for an argument that developing countries should not respond to recent events by turning inward. And it is common to see predictions that the world has now passed the high point o

10、f globalization. But it is too soon to tell whether these developments will lead to a reversal of the policy trends discussed in this Policy Brief. However; see Subramanian (2020) for an argument that developing countries should not respond to recent events by turning inward.The recent shocks certai

11、nly point to the desirability of diversification of supply chains and the need for adequate domestic strategic reserves of essential products. Pinelopi Goldberg (2020) makes the case that they have also underscored the extent to which countries are interdependent. And they have shown the ability of

12、an open global system to enable more resilient responses than those based on self-reliancethe WTO has documented that, in response to the pandemic, trade-facilitating measures undertaken by the G20 have far outweighed trade-restricting measures. COVID-19 related trade-facilitating measures on goods

13、implemented since January 2020 covered trade worth an estimated USD 155 billion, while pandemic-related trade-restrictive measures COVID-19 related trade-facilitating measures on goods implemented since January 2020 covered trade worth an estimated USD 155 billion, while pandemic-related trade-restr

14、ictive measuresmost of which were export controlscovered trade worth USD 111 billion. Of the 133 COVID-19 trade and trade-related measures recorded for G20 economies since the outbreak of the pandemic, 63 per cent were of a trade-facilitating nature and 37 per cent were trade restrictive/7 WTO Trade

15、 Monitoring news item, November 18, 2020 (accessed on February 28, 2021).Indeed, despite the talk of deglobalization, many countries have recently increased their commitments to further trade liberalization, albeit at the regional level. Since 2018, for example, 11 Asia-Pacific countries have implem

16、ented the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, more than 50 countries agreed to the African Continental Free Trade Area, and 15 countries in the Asia-Pacific concluded the Regional Comprehensive Economic Partnership in late 2020.As Mork Twain said about his death, r

17、eports of the end of globalization may be greatly exaggerated.REFERENCESAmiti, Mary, Mi Dai, Robert C. Feenstra, and John Romalis. 2020. How Did Chinas WTOEntry Affect U.S. Prices? Journal of International Economics 126.Auboin, Marc, and Floriana Borino. 2017. The Falling Elasticity of Global Trade

18、to Economic Activ什y: Testing the Demand Channel, Improving Global Trade Forecasts. VoxEU/ CEPR, June 26 (accessed on February 27, 2021).Bown, Chad, ed. 2011. The Great Recession and Import Protection: The Role of Temporary Trade Barriers. London and Washington: Centre for Economic Policy Research an

19、d World Bank.Bown, Chad P.z Euijin Jung, and Eva (Yiwen) Zhang. 2019. Trump Has Gotten China to Lower Its Tariffs. Just Toward Everyone Else. PIIE Trade and Investment Policy Watch blog, June 19 (accessed on February 27, 2021).Bown, Chad P.f and Melina Kolb. 2021. Trump*s Trade War Timeline: An Up-t

20、o-DateGuide. PIIE Trade and Investment Policy Watch blog, February 2021 (accessed on February 27, 2021).Eichengreen, Barry, and Kevin ORourke. 2010. What Do the New Data Tell Us? VoxEU/ CEPR, March 8 (accessed on February 27, 2021).Evenett, Simon J.z and Richard Baldwin. 2020. Revitalising Multilate

21、ralism: Pragmatic Ideas for the New WTO Director-General. London: Centre for Economic Policy Research.Evene甘,Simon J., and Johannes Fritz. 2019. Going It Alone? Trade Policy after Three Years of Populism. 25th Global Trade Alert Report. London: Centre for Economic Policy Research.Fletcher, Ian. 2020

22、. Uncle Samz Global Trade Sucker. HuffPost, June 14 (accessed on February 27, 2021).Goldberg, Pinelopi Koujianou. 2020. The New Empty Argument Against Trade. Project Syndicate, May 12 (accessed on February 27z 2021).Henn, Christian, and Brad McDonald. 2014. Crisis Protectionism: The Observed Trade I

23、mpact. IMF Economic Review 62, no. 1: 77-118.Kee, Hiao Looiz Cristina Neagu, and Alessandro Nicita. 2013. Is Protectionism on the Rise? Assessing National Trade Policies during the Crisis of 2008. Review of Economics and Statistics 95, no. 1: 342-46.Laborde, David. 2014. Implications of the Draft Ma

24、rket Access Modalities on Bound and Applied Tariffs. In Tackling Agriculture in the Post-Bali Context: A Collection of Short Essays, ed Ricardo Melendez-Ortiz, Christophe Bellmann, and Jonathan Hepburn. Geneva: International Centre for Trade and Sustainable Development.Lamyz Pascal. 2013. Global Val

25、ue Chains, Interdependence, and the Future of Trade. VoxEU/ CEPR, December 18 (accessed on February 27, 2021).Lovely, Mary E., and Jeffrey J. Schott. 2019. The USMCA: New, Modestly Improved, but Still Costly. PIIE Trade and Investment Policy Watch blog, December 17 (accessed on February 27, 2021).Na

26、varro, Peter. 2019. Ricardo Is Dead. Long Live Fair, Balanced, and Reciprocal Trade. Presentation to Harvard Kennedy Schools Institute of Politics, April 25 (accessed on February 28, 2021).Rapoza, Kenneth. 2020. The Post-Coronavirus World May Be the End of Globalization. Forbes, April 3.Rodrik, Dani

27、. 2017. Straight Talk on Trade: Ideas for a Sane World Economy. Princeton University Press.Subramanian, Arvind. 2020. Developing Countries Must Not Succumb to Export Pessimism. Financial Times, October 15.Toheri, Homo. 2020. Can a Reformed Safeguard System Save the Trading System?Unpublished manuscr

28、ipt, Harvard Kennedy School.APPENDIXEXAMPLES OF SAFEGUARD MEASURES UNDERTAKEN BY INDIA AND INDONESIA, 2015-2017IndiaIn November 2016 India implemented a definitive safeguard measure on imports of hot-rolled flat sheets and plates with HS codes 72254013, 72254019, 72254020, 72254030, and 72259900. Wh

29、ile the bound tariff rate on these products is set at 40 percent, the applied tariff rate was as low as 10 percent in 2016. With this measurez India applied a safeguard surcharge tariff of 10 percent for the first year 8 percent for the second year and 6 percent for the third year.18J9 In 2018 the a

30、pplied tariff rate on these products was increased to 15 percent.In March 2016 a definitive safeguard measure was applied to another HS code of the same family, 72253090. While this product, like the others, had a bound tariff of 40 percent and applied tariff of 10 percent, India implemented a surch

31、arge ad valorem tariff of 20 percent for the first year, 18 percent for the second year, and 15 percent for the third year This appendix was written by Homa laheri. All bound tariff rates are from :#tariffdata.wto. org/ and applied tariff rates are from All these are ad valorem rates minus antidumpi

32、ng duty, if any, payable on imports of this class of products. WTO document number G/SG/N/8/IND/30/Suppl.l-G/SG/N/10/IND/21/Suppl.l- G/SG/N/11/ IND/16/Suppl.l. This appendix was written by Homa laheri. All bound tariff rates are from :#tariffdata.wto. org/ and applied tariff rates are from All these

33、 are ad valorem rates minus antidumping duty, if any, payable on imports of this class of products. WTO document number G/SG/N/8/IND/30/Suppl.l-G/SG/N/10/IND/21/Suppl.l- G/SG/N/11/ IND/16/Suppl.l. WTO document number G/SG/N/8/IND/28/Suppl.l-G/SG/N/10/IND/19/Suppl.l-G/SG/N/ll/ IND/14/Suppl.3.In March

34、 2015 India imposed a definitive safeguard measure on imports of saturated fatty alcohol. The bound tariff on products with HS codes 38237010, 38237020, 38237040, and 38237090 (group 1) is 50 percent, while HS code 29051 700 (group 2) has a bound tariff of 40 percent. All these products had applied

35、tariffs of 7.5 percent at the time. India applied a dfin什ive safeguard duty of 20 percent ad valorem for the first year, 18 percent ad valorem for the second year and 12 percent ad valorem for the third year on imports of these products. WTO document number G/SG/N/8/IND/26/Suppl.2-G/SG/N/10/IND/lZ/S

36、uppl.2-G/SG/N/ll/ IND/12/Suppl.2. In 2018 the applied tariff rate of groups 1 and 2 increased to 50 and 10 percent, respectively. With this change, India used up its full margin for group i products (no tariff overhang), while maintaining a tariff overhang of 30 percent for the group 2 products. WTO

37、 document number G/SG/N/8/IND/26/Suppl.2-G/SG/N/10/IND/lZ/Suppl.2-G/SG/N/ll/ IND/12/Suppl.2.IndonesiaIn September 2015 Indonesia applied a safeguard measure on imports of coated paper and paperboard, not including banknotes paper, w什h HS codes 4810131100, 4810131900, 4810139190, 4810139990, 48101411

38、00, 4810141900, 4810149190, 4810149990, 4810191100, 4810191990, 4810199190, and 4810199990. The bound tariff rate for these products is set at 40 percent and the applied tariff rate at 5 percent. The country applied safeguard duties of 9 percent in the first year, 7 percent in the second year, and 5

39、 percent in the third year.WTO document number G/SG/N/8/IDN/19/Suppl.l-G/SG/N/10/IDN/19/Suppl.l.WTO document number G/SG/N/8/IDN/19/Suppl.l-G/SG/N/10/IDN/19/Suppl.l.In September 2015 Indonesia applied a safeguard measure on imports of coated paper and paperboard, not including banknotes paper, w什h H

40、S codes 4810131100, 4810131900, 4810139190, 4810139990, 4810141100, 4810141900, 4810149190, 4810149990, 4810191100, 4810191990, 4810199190, and 4810199990. The bound tariff rate for these products is set at 40 percent and the applied tariff rate at 5 percent. The country applied safeguard duties of

41、9 percent in the first year, 7 percent in the second year, and 5 percent in the third year.WTO document number G/SG/N/8/IDN/19/Suppl.l-G/SG/N/10/IDN/19/Suppl.l.WTO document number G/SG/N/8/IDN/19/Suppl.l-G/SG/N/10/IDN/19/Suppl.l.In January 2015 Indonesia applied definitive safeguard measures on impo

42、rts of I and H Sections of other alloy steel with HS codes 7228701000 and 7228709000. The bound tariff rate for these products was 40 percent, and the applied tariff rate was set 5 percent for the first product and 12.5 percent for the second. Under this safeguard measure, a surcharge of 26 percent

43、during the first year 22 percent during the second year, and 18 percent during the third year has been imposed on these products.WTO document number G/SG/N/8/IDN/lSuppl.l-G/SG/N/10/IDN/lZ/Suppl.l-G/SG/N/ll/IDN/15.WTO document number G/SG/N/8/IDN/lSuppl.l-G/SG/N/10/IDN/lZ/Suppl.l-G/SG/N/ll/IDN/15.In

44、October 2018 Indonesia imposed a safeguard measure on imports of ceramic flags and paving, hearth or wall tiles with HS codes 69072191, 69072192, 69072193, 69072194, 69072291, 69072292, 69072293, 69072294, 69072391, 69072392, 69072393, and 69072394. The bound tariff rate for these products was 40 pe

45、rcent and the applied tariff rate 20 percent. A safeguard duty of 23 percent, 21 percent, and 19 percent has been imposed for the first, second, and third years, respectively.In November 2019 Indonesia initiated a safeguard measure on imports of aluminum foil with HS code 76071100. The bound tariff

46、rate for this product at the 6-digit level varies between 30 and 40 percent, with an average value of 35 percent; the applied tariff rate was 20 percent in 2018. With the 2019 measure, Indonesia applied a safeguard duty of 6 percent for the first year and 4 percent for the second year.WTO document n

47、umber G/SG/N/10/IDN/21/Suppl.l-G/SG/N/U/IDN/21.WTO document number G/SG/N/10/IDN/21/Suppl.l-G/SG/N/U/IDN/21.In January 2020 Indonesia applied a safeguard on imports of evaporators with HS code 84189910. The countrys bound tariff rate on imports of evaporators is set at 40 percent, and the MFN applie

48、d tariff has been at the 5 percent level as of 2018. With the 2020 measure, a safeguard duty of 17 percent was applied for the first year 15.5 percent for the second year, and 14 percent for the third year.WTO document number G/SG/N/10/IDN/22/Suppl.l-G/SG/N/U/IDN/22.WTO document number G/SG/N/10/IDN

49、/22/Suppl.l-G/SG/N/U/IDN/22.This evidence of import liberalization also suggests that rising protectionism was not responsible for the slow growth in world trade that has been evident since 2011. It remains uncertain whether countries will now respond to disruptions to global supply chains since 201

50、8 caused by Trumps trade policies and the COVID-19 pandemic by reversing these policies, but the sustained enthusiasm for new megaregional trade agreements suggests many countries will not.Why Trumps Trade Policies Were MisplacedFor over eight decodes, in the aftermath of its disastrous Smoot-Hawley

51、 tariffs, the United States tried to persuade other countries to lower their tariff barriers on a reciprocal basis. This approach was embodied in the Reciprocal Trade Agreement Act of 1934, which transferred the power to set tariffs from Congress and instead authorized the president to negotiate tar

52、iff reductions on a reciprocal basis. This approach was embodied in the Reciprocal Trade Agreement Act of 1934, which transferred the power to set tariffs from Congress and instead authorized the president to negotiate tariff reductions on a reciprocal basis.For over eight decodes, in the aftermath

53、of its disastrous Smoot-Hawley tariffs, the United States tried to persuade other countries to lower their tariff barriers on a reciprocal basis. This approach was embodied in the Reciprocal Trade Agreement Act of 1934, which transferred the power to set tariffs from Congress and instead authorized

54、the president to negotiate tariff reductions on a reciprocal basis. But since average US tariffs are still below those in most other countries, many Americans believe these efforts have not been successful. They complain that the playing field of international competition is not level and that Uncle

55、 Sam has become Uncle Sucker (Fletcher 2020). The Trump administration not only complained about the much higher tariffs in many developing countries but also singled out the tariffs of the European Union as egregiously violating reciprocity with the United States. This approach was embodied in the

56、Reciprocal Trade Agreement Act of 1934, which transferred the power to set tariffs from Congress and instead authorized the president to negotiate tariff reductions on a reciprocal basis.The statements and trade policies of the Trump administration reflected a profound sense of grievance over these

57、disparities. As observed by Peter Navarro (2019), former White House advisor on trade, 4Whether youre a pure free trader or a fair reciprocal and balanced trader like the president, if you live in a relatively low-tariff country like the U.S. you should oppose an international trading system that he

58、lps institutionalize nonreciprocal tariffs/ Ironically, given complaints that the WTO has been insufficiently constraining with respect o national trade policies, Dani Rodrik (2017) has raised the opposite concern: that, since the 1990s, the WTO has been excessively limiting the policy space availab

59、le to its members. Ironically, given complaints that the WTO has been insufficiently constraining with respect o national trade policies, Dani Rodrik (2017) has raised the opposite concern: that, since the 1990s, the WTO has been excessively limiting the policy space available to its members.Trumps

60、trade policies were designed to redress this situation. Regardless of whether they were compatible with the rules agreed to by his predecessors or the norms they had adhered to, Trump used every pretext available to raise US tariffs. Robert Lighthizer, the US Trade Representative, has claimed that t

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