1887

OECD Trade Policy Papers

This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

English

Trade Policy Implications of Global Value Chains

Case Studies

Taking global value chains (GVCs) into account has important implications for trade policy. When production is vertically fragmented and trade in intermediate inputs is prevalent, one has to look differently at a certain number of issues. Through case studies, this paper provides new evidence on the incidence on services of tariffs levied on goods (case study 1) and then discusses effective rates of protection in a world of GVCs and what the removal of tariffs on intermediate inputs implies, using the example of Canada (case study 2). To illustrate how trade agreements could be made more relevant for GVCs, the paper further looks at sectoral approaches in trade negotiations through the example of the Information Technology Agreement (case study 3) and finally compares the network of regional trade agreements in force with global production networks (case study 4).

English

Keywords: effective rates of protection, regional trade agreements, trade in intermediate inputs, fragmentation of production, cumulative tariffs, network trade, global value chains, vertical specialization
JEL: F20: International Economics / International Factor Movements and International Business / International Factor Movements and International Business: General; F14: International Economics / Trade / Empirical Studies of Trade; F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business; F13: International Economics / Trade / Trade Policy; International Trade Organizations
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