Figure 5.1 Worldwide applied tariff rate, 1988-2010

Worldwide weighted average applied tariff rate; % 1988-2010

0

1

2

3

4

5

6

7

8

9

10

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010Source: World Development Indicators online; applied tariff rate, weighted mean, all products. Applied rates are rates that are actually used and differ from those that are allowed (these are the so-called bound rates, which are usually higher than the applied tariff rates)

Figure 5.2 USA average tariffs, 1820–2010

0

10

20

30

40

50

60

1820 1850 1880 1910 1940 1970 2000

tarif

f re

venu

e /

impo

rt v

alue

tarif f of Abominations

Morrill and War tariffs Haw ley-

SmootFordney-McCumby

Kennedy

Total tariff revenue/total imports; from 1998-2010: weighted average applied tariff (all goods)

Figure 5.3 Applied tariff rate; simple mean, all products, 2010

Source: World Bank eAtlas of Global Development; 2010 or latest available.

quantity

demand

supply

price

p0

p1

p1(1+t)

tariff

q0 q1 q4q3

imports before tariff

imports after tariff

= increase producer surplus

= net loss; possible gain

= decrease consumer surplus

= increase government revenue

D E G

EE

DD

GG+

DD

EE

FF

GG

F1

F2

F1

F2F2-

F1

F2

F1

F2F2

p2

q2 quantity

demand

supply

price

p0

p1

p1(1+t)

tariff

q0 q1 q4q3

imports before tariff

imports after tariff

= increase producer surplus

= net loss; possible gain

= decrease consumer surplus

= increase government revenue

D E G

EE

DD

GG+

DD

EE

FF

GG

F1

F2

F1

F2F2

F1

F2F2-

F1

F2

F1

F2F2

p2

q2

Figure 5.4 Domestic welfare effects of imposing a tariff

trade

price

p1

p0

p1(1+t)

tariff

trade0trade1

E+G

F2

F1

H

Foreign export supply

Domestic import demand

trade

price

p1

p0

p1(1+t)

tariff

trade0trade1

E+G

F2

F1

H

Foreign export supply

Domestic import demand

Figure 5.5 The world welfare effects of a tariff

Figure 5.6 ‘Predicted’ duration of the Doha round

WTO/GATT negotiation rounds

0

20

40

60

80

100

120

0 30 60 90 120 150number of participants

dura

tion

(mon

ths)

predicted duration of Doha round

Annecy

Kennedy

Dillon

Geneva II

Torquay

Geneva

Uruguay

Tokyo

regression line

actual duration Doha round

Source: Neary (2004); Note, that Doha is becoming an outlier. The predicted duration is below the actual duration; its 10th anniversary was in November 2011. Data source: See table 5.1.

quantity

demand

supply

price

pC

pB

pB+t

pC+ttariff

tariff

q0 q1 q4q3

imports after customs union

imports before customs union

= decrease producer surplus

= net gain

= increase consumer surplus

= decrease government revenue

D

E

F

G

EE

DD

FF

GG+

DD

EE

FF

GG

quantity

demand

supply

price

pC

pB

pB+t

pC+ttariff

tariff

q0 q1 q4q3

imports after customs union

imports before customs union

= decrease producer surplus

= net gain

= increase consumer surplus

= decrease government revenue

DD

EE

FF

GG

EE

DD

FF

GG+

DD

EE

FF

GG

Figure 5.7 Customs union: trade creation

quantity

demand

supply

price

pB

pC

pC+t

pB+ttariff

tariff

q0 q1 q4q3

imports after customs union

imports before customs union

= decrease producer surplus

= net gain; possible loss

= increase consumer surplus

= decrease government revenue

D E G

EE

DD

GG+

DD

EE

FF

GG

F1

F2

F1

F2F2-

F1

F2

F1

F2F2

quantity

demand

supply

price

pB

pC

pC+t

pB+ttariff

tariff

q0 q1 q4q3

imports after customs union

imports before customs union

= decrease producer surplus

= net gain; possible loss

= increase consumer surplus

= decrease government revenue

D E G

EE

DD

GG+

DD

EE

FF

GG

F1

F2

F1

F2F2

F1

F2F2-

F1

F2

F1

F2F2

Figure 5.8 Customs union: trade creation and diversion

Figure 5.9 Additional trade costs of NTM measures in EU-US trade; 2010, percent Additional trade costs of NTM measures in EU-US trade, percent

0 10 20 30 40 50 60 70 80

Personal etc. serv.

Construction

Electronics

Communication serv.

ICT serv.

Other business serv.

Wood & paper prod.

Pharmaceuticals

Metals

Insurance serv.

Textiles, cloth & shoes

Aerospace

Office info & com. eq.

Financial serv.

Chemicals

Automotives

Cosmetics

Food & beverages

EU export to US

US export to EUSource: Berden et al. (2010); sectors sorted by average additional trade costs.