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Mary Amiti and Mr. John Romalis

under its Everything But Arms (EBA) program; the enhancement of the EU’s GSP scheme for LDCs; and the phased elimination of EU tariffs on sugar, rice, and banana imports from ACP countries. It is assumed that LDCs already have tariff-free access to the EU for those exports. These tariffs will be reduced or eliminated regardless of the outcome of the Doha Round. Because the focus of this paper is whether a multilateral tariff reduction resulting from a successful Doha Round itself would lead to preference erosion, these earlier commitments are taken as given. The

Mr. John Romalis and Mary Amiti
This paper assesses the effects of reducing tariffs under the Doha Round on market access for developing countries. It shows that for many developing countries, actual preferential access is less generous than it appears because of low product coverage or complex rules of origin. Thus lowering tariffs under the multilateral system is likely to lead to a net increase in market access for many developing countries, with gains in market access offsetting losses from preference erosion. Furthermore, comparing various tariff-cutting proposals, the research shows that the largest gains in market access are generated by higher tariff cuts in agriculture.
Mr. Paul R Masson
The more advanced Central and Eastern European Countries (CEECs) face an evolving set of considerations in choosing their exchange rate policies. On the one hand, capital mobility is increasing, and this imposes additional constraints on fixed exchange rate regimes, while trend real appreciation makes the combination of low inflation and exchange rate stability problematic. On the other hand, the objectives of EU and eventual EMU membership make attractive a peg to the euro at some stage in the transition. The paper discusses these conflicting considerations, and considers the feasibility of an alternative monetary framework, inflation targeting.
Mr. John Romalis and Mary Amiti

Front Matter Page Research Department Authorized for distribution by Kalpana Kochhar Contents I. Introduction II. Data Description and Research Strategy A. Data B. Research Strategy III. Results A. Current State of Play B. Effects of U.S. and EU Tariff Reductions on All Goods IV. Conclusions Appendix 1. Technical Information References Tables 1. Export Shares, 2003 2. Average Tariffs Are Higher on Non-African LDCs’ Goods Exported to the United States and European Union 3. Average Tariffs Are Higher on LDC and

Rupa Chandha

measures 4. Intellectual property rights V. Concluding Remarks Text tables 1. Kenya: Tariff Bindings in the Uruguay Round 2. Kenya: Concessions Received on Exports 3. Kenya: Impact of EU Tariff Cuts on Exports 4. Kenya: Impact of Japan’s Tariff Cuts on Exports 5. Kenya: Impact of U.S. Tariff Cuts on Exports 6. Kenya: Summary Impact on Exports to the EU, Japan, and the U.S. 7. Kenya: Impact of Changes in World Agricultural Prices 8. Kenya: Overall Balance of Payments Effect References Summary The Uruguay Round Agreement improved

International Monetary Fund

any revenues emanating from the CPF privatizations. Thanks to recent WTO membership, a free trade agreement with Bosnia and Herzegovina and other regional partners, and now the move towards a Stabilization and Association Agreement with the EU, tariffs have been further reduced. Croatia now ranks a ‘1’ on the Fund’s trade restrictiveness index, putting it among the most open economies.