WTO Working Papers

WTO working papers usually represent research in progress. Such research may be conducted in the preparation of WTO Secretariat reports, studies or other material for WTO members. The papers are circulated for comment because the WTO considers critical review of professional research to be extremely important.


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 TiVAdatabase, 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.


Keywords: Trade in Value Added, Tariff, International Outsourcing and Competitiveness, Effective Protection
JEL: O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; C67: Mathematical and Quantitative Methods / Mathematical Methods; Programming Models; Mathematical and Simulation Modeling / Input-Output Models; F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business; D24: Microeconomics / Production and Organizations / Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity; C38: Mathematical and Quantitative Methods / Multiple or Simultaneous Equation Models; Multiple Variables / Classification Methods; Cluster Analysis; Principal Components; Factor Models; F13: International Economics / Trade / Trade Policy; International Trade Organizations; F60: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: General
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