The effects of imposition of preferential tariffs among D8 members on Iran\'s agricultural trade

Document Type : Original Article

Abstract

This article studies the effects of a possible preferential trade agreement (PTA) among D8 members (Iran, Turkey, Pakistan, Indonesia, Malaysia, Bangladesh, Egypt and Nigeria) on Iran's agricultural trade flows and tariff income. To do so, the effects of trade creation as well as trade diversion in agricultural sectors of these countries are estimated based on two tariff reduction scenarios using a partial equilibrium model. Then the effects on Iran's export and import as well as its tariff income in agricultural trade with other D8 members are calculated.
The results show that such an agreement would increase Iran's agricultural trade and export and would reduce its tariff income.