Comparing market access formulas

This paper studies the impacts of several tariff reduction formulas on market access to US and EU agricultural markets. The two main instruments for the definition of market access are tariffs and TRQs. A liberalization of these policy instruments does not automatically improve import opportunities as this depends on the interaction of MFN tariff cuts, and developments of domestic supply and demand. Therefore, in separate simulations the effect of these instruments on different commodity markets is assessed. The simulations are carried out within the framework of a partial-equilibrium, spatial, multi-commodity trade model. The results show that for most commodities only limited new market access opportunities are created. In TRQ regimes stronger MFN tariff reductions as implied by the use of the Swiss approach achieve similar market access results as a combination of TRQ expansion and lowered in-quota tariffs.