Market Access : the Heart of the DDA

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• Market Access the Heart of the DDA
• Kenneth HEYDON
• OECD Trade Directorate

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Border protection down...merchandise trade
upAverage tariff level (industrial goods, left
axis) and trade volume index (1950 100, right
axis)
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OECD Study Welfare gains in developed and
developing countries from tariff reductions and
trade facilitation
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OECD Study Initial differences between bound and
applied tariffs (by sector)
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OECD study Sectoral origins of welfare gains
going to developing countries from full tariff
liberalisation
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Which farms benefit from support?share of 25
largest farms in
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Services make up a major and growing portion of
the world economy

• In 2000, the estimated total value of world
  services was some US 1.4 trillion.
• In 2000, services made a major contribution to
  the GDP of both developed and developing
  countries
• services to GDP ratio in DCs ranged from 39 in
  Nigeria to 89 in Hong Kong, China
• average services to GDP ratio in the 49 LDCs was
  10 with peaks of 50

Source World Development Indicators
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Gains from trade liberalisation
Note Estimates vary on the basis of the size of
initial barriers, theoretical frameworks,
modeling techniques and datasets used
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Scenario results on income effects

• Taking into account country, sector and trader
  diversity the larger gains from trade
  facilitation should accrue to developing
  countries

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Backing up Trade Policy Reform

• Regulatory Reform
• Institutions for Conflict Resolution
• property rights
• anti trust
• social insurance
• Sound Macro-economic Management
• Labour Market Flexibility
• Technical Assistance Capacity Building