Welfare and Market Access Effects of Piecemeal Tariff Reform

In a situation where tariff reforms are being negotiated between two parties, one of which aims to raise its exports and the other aims to raise its welfare, tariff cuts must be in the interest of at least one party. It is possible for the interests of the two sides to conflict. Conflict is certain if the excess demand for export goods does not respond to changes in the prices of imported goods. In this case, any policy which raises imports, must also reduce welfare