The Global Costs of Protectionism
This paper quantifies the wide-ranging costs of potential increases in worldwide barriers to trade in two scenarios. First, a coordinated global withdrawal of tariff commitments from all existing bilateral/regional trade agreements, as well as from...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/962781513281198572/The-global-costs-of-protectionism http://hdl.handle.net/10986/29013 |
| id |
okr-10986-29013 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-290132022-01-03T12:24:43Z The Global Costs of Protectionism Kutlina-Dimitrova, Zornitsa Lakatos, Csilla PROTECTIONISM PREFERENTIAL TARIFFS BOUND TARIFFS WTO GLOBAL ECONOMY This paper quantifies the wide-ranging costs of potential increases in worldwide barriers to trade in two scenarios. First, a coordinated global withdrawal of tariff commitments from all existing bilateral/regional trade agreements, as well as from unilateral preferential schemes coupled with an increase in the cost of traded services, is estimated to result in annual worldwide real income losses of 0.3 percent or US$211 billion relative to the baseline after three years. An important share of these losses is likely to be concentrated in regions such as East Asia and Pacific and Latin America and the Caribbean which together account for close to one-third of the global decline in welfare. Highlighting the importance of preferences, the impact on global trade is estimated to be more pronounced, with an annual decline of 2.1 percent or more than US$606 billion relative to the baseline if these barriers stay in place for three years. Second, a worldwide increase in tariffs up to legally allowed bound rates coupled with an increase in the cost of traded services would translate into annual global real income losses of 0.8 percent or more than US$634 billion relative to the baseline after three years. The distortion to the global trading system would be significant and result in an annual decline of global trade of 9 percent or more than US$2.6 trillion relative to the baseline in 2020. 2017-12-15T18:43:57Z 2017-12-15T18:43:57Z 2017-12 Working Paper http://documents.worldbank.org/curated/en/962781513281198572/The-global-costs-of-protectionism http://hdl.handle.net/10986/29013 English Policy Research Working Paper;No. 8277 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PROTECTIONISM PREFERENTIAL TARIFFS BOUND TARIFFS WTO GLOBAL ECONOMY |
| spellingShingle |
PROTECTIONISM PREFERENTIAL TARIFFS BOUND TARIFFS WTO GLOBAL ECONOMY Kutlina-Dimitrova, Zornitsa Lakatos, Csilla The Global Costs of Protectionism |
| relation |
Policy Research Working Paper;No. 8277 |
| description |
This paper quantifies the wide-ranging
costs of potential increases in worldwide barriers to trade
in two scenarios. First, a coordinated global withdrawal of
tariff commitments from all existing bilateral/regional
trade agreements, as well as from unilateral preferential
schemes coupled with an increase in the cost of traded
services, is estimated to result in annual worldwide real
income losses of 0.3 percent or US$211 billion relative to
the baseline after three years. An important share of these
losses is likely to be concentrated in regions such as East
Asia and Pacific and Latin America and the Caribbean which
together account for close to one-third of the global
decline in welfare. Highlighting the importance of
preferences, the impact on global trade is estimated to be
more pronounced, with an annual decline of 2.1 percent or
more than US$606 billion relative to the baseline if these
barriers stay in place for three years. Second, a worldwide
increase in tariffs up to legally allowed bound rates
coupled with an increase in the cost of traded services
would translate into annual global real income losses of 0.8
percent or more than US$634 billion relative to the baseline
after three years. The distortion to the global trading
system would be significant and result in an annual decline
of global trade of 9 percent or more than US$2.6 trillion
relative to the baseline in 2020. |
| format |
Working Paper |
| author |
Kutlina-Dimitrova, Zornitsa Lakatos, Csilla |
| author_facet |
Kutlina-Dimitrova, Zornitsa Lakatos, Csilla |
| author_sort |
Kutlina-Dimitrova, Zornitsa |
| title |
The Global Costs of Protectionism |
| title_short |
The Global Costs of Protectionism |
| title_full |
The Global Costs of Protectionism |
| title_fullStr |
The Global Costs of Protectionism |
| title_full_unstemmed |
The Global Costs of Protectionism |
| title_sort |
global costs of protectionism |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/962781513281198572/The-global-costs-of-protectionism http://hdl.handle.net/10986/29013 |
| _version_ |
1764468269231636480 |