DP2747 Tariff Peaks in the Quad and Least Developed Country Exports

Author(s):	Bernard Hoekman, Francis Ng, Marcelo Olarreaga
Publication Date:	March 2001
Keyword(s):	Least Developed Countries, Market Access, Trade Preferences
JEL(s):	F13, F14, O19
Programme Areas:	International Trade and Regional Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=2747

Although average tariffs in Quad markets are very low, tariff peaks and tariff escalation have a disproportional effect on exports from least developed countries (LDCs). Tariff peak products tend to be heavily concentrated in agriculture and food products and in labour-intensive sectors such as apparel and footwear. Full duty and quota free access for LDCs in the Quad for tariff peak products would result in an 11% increase in their total exports - in the order of $2.5 billion. Exports to Quad countries of tariff peak products would expand by 30-60%. Given that LDC exports of tariff peak items account for only a small share of total developing country exports, granting LDCs duty free access has a negligible impact on other developing countries. For the same reason, Quad imports increase only marginally, suggesting that this should not be a factor constraining implementation of duty free access for the poorest countries.