India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

Applied ad valorem tariff equivalents were obtained from the United Nations Conference
on Trade <strong>and</strong> Development (UNCTAD) Trade Analysis <strong>and</strong> Information System
(TRAINS) data <strong>and</strong> the MAcMapHS6 data. 10 <strong>India</strong>n food <strong>and</strong> agricultural tariffs are
current as <strong>of</strong> 2007.
The elasticities ES G , ES D , ES M (fig. H.1) are based on the GTAP database. Estimated
values for ES M <strong>and</strong> their st<strong>and</strong>ard deviations are shown in table H.2. Employing the “rule
<strong>of</strong> two,” values for ES D , <strong>and</strong> ES G are computed from ES M as follows: ES D = ES M /2 <strong>and</strong>
ES G = ES D /2. 11 A range <strong>of</strong> simulated effects is obtained by employing low <strong>and</strong> high
values for ES M . 12 Table H.2 also shows the values <strong>of</strong> ET G , the parameter determining the
supply response at the HS6 product level (fig. H.1). For most product groups, ET G is
assigned the value –1. For product groups that may require relatively more resources <strong>and</strong>
time to adjust to price changes, ET G is assigned the value –0.8.
TABLE H.2 Values <strong>of</strong> partial equilibrium model parameters ES M <strong>and</strong> ET G
ES M
Product group Estimated value St<strong>and</strong>ard deviation ET G
Paddy rice 10.1 4.0 -1.0
Wheat 8.9 4.2 -1.0
Cereal grains n.e.c. 2.6 1.1 -1.0
Vegetables, fruit, nuts 3.7 0.4 -0.8
Oil seeds 4.9 0.8 -1.0
Sugar cane, sugar beet 5.4 2.4 -1.0
Plant-based fibers 5.0 0.4 -1.0
Crops n.e.c. 6.5 0.7 -0.8
Cattle, sheep, goats, horses 4.0 0.7 -0.8
Animal products n.e.c. 2.6 0.3 -0.8
Wool, silk-worm cocoons 12.9 2.7 -1.0
Forestry 5.0 0.7 1.0
Fishing 2.5 0.6 -1.0
Meat: cattle, sheep, goats, horses 7.7 1.9 -1.0
Meat product n.e.c. 8.8 0.9 -1.0
Vegetable oils <strong>and</strong> fats 6.6 0.7 -1.0
Dairy products 7.3 0.8 -1.0
Processed rice 5.2 2.6 -1.0
Sugar 5.4 2.0 -1.0
Food products n.e.c. 4.0 0.1 -1.0
Beverages <strong>and</strong> tobacco products 2.3 0.3 -1.0
Textiles 7.5 0.1 -1.0
Wearing apparel 7.4 0.2 -1.0
Leather products 8.1 0.3 -1.0
Chemical, rubber, plastic products 6.6 0.1 -1.0
Manufactures n.e.c. 7.5 0.2 -1.0
Source: Estimated values for ES M <strong>and</strong> their st<strong>and</strong>ard deviation are from Hertel et al., “How Confident Can We Be
<strong>of</strong> CGE-Based Assessments <strong>of</strong> Free Trade Agreements” 2007.
Note: The acronym n.e.c. means not elsewhere classified.
10 TRAINS statistics were downloaded from WITS on February 13, 2009. For documentation <strong>of</strong> the
MAcMapHS6 database, see Boumellassa, Laborde, <strong>and</strong> Mitaritonna, “A Consistent Picture <strong>of</strong> the Protection
Across the World in 2004,” 2009.
11 This rule was proposed by Jomini et al., The SALTER Model <strong>of</strong> the World Economy, 1994. Another
study failed to reject this rule statistically. Lui, Arndt, <strong>and</strong> Hertel, “Parameter Estimation <strong>and</strong> <strong>Measures</strong> <strong>of</strong>
Goodness <strong>of</strong> Fit in a Global General Equilibrium Model,” 2004, 626–49.
12 Low <strong>and</strong> high values for ES M are computed as ES M + st<strong>and</strong>ard deviation (table H.2).
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