Implementing Bilateral Tariff Rate Quotas in GTAP using GEMPACK

Abstract

Explicit modeling of tariff rate quotas (TRQs) is important in the current World Trade Organization negotiations. In order to do such modeling with GTAP, extra data is required and extra equations must be added to the model. This paper provides tools for assisting modelers to carry out explicit modeling of bilateral tariff rate quotas in GTAP using GEMPACK. The paper describes how the extra data for sugar TRQ applications was obtained and reconciled with the standard GTAP data. Supplied with the paper is a TABLO Input file TRQDATA.TAB which others can use for reconciling their TRQ data with the usual GTAP data. Supplied with the paper is a module which can be added to the standard TABLO Input files for GTAP. This module contains the extra equations required to model TRQs. Detailed hands-on examples are supplied with the paper, as is a TRQ application relating to a partial liberalization of sugar TRQ. Readers of the paper can replicate these applications. A windows interface TRQmate is supplied with the paper. This is a relatively general-purpose interface which automates the steps in carrying out TRQ applications with GTAP and GEMPACK. If you wish to carry out your own bilateral TRQ applications with GTAP and GEMPACK, the tools supplied with this paper will make it relatively straightforward for you to do so once you have collected the extra data you need.

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