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The Effects of Alternative Proposals for Agricultural Export Subsidies in the Current WTO Round

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  • Conforti, Piero
  • Velazquez, Beatriz E.
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    Abstract

    The article is aimed at assessing the impact of reducing and/or eliminating EU export subsidies within the next WTO round. The Global Trade Analysis Project (GTAP) model and database are employed to study the effects of the two main proposals put forward on this matter by the EU and the U.S. Results of the simulations confirm the common knowledge that the elimination of EU export subsidies would bring about increases in prices, exports and production for several net exporters of agricultural products. At the same time, such effects are all relatively small in size, particularly the effects on trade, production and welfare, even under the more radical scenario that simulates the elimination of export subsidies. Despite the fact that some net importing countries would suffer from a more expensive import bill, benefits may arise for some of them in terms of incentives to substitute domestic production for imports. This is the case in the Mediterranean region, and to a lesser extent sub-Saharan Africa.

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    File URL: http://purl.umn.edu/23848
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    Bibliographic Info

    Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

    Volume (Year): 05 (2004)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:ecjilt:23848

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    Related research

    Keywords: export competition; GTAP model; WTO negotiations; International Relations/Trade;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
    2. Bruce A. Babcock & John C. Beghin & Jacinto F. Fabiosa & Stephane De Cara & Amani Elobeid & Cheng Fang & Chad E. Hart & Murat Isik & Holger Matthey & Alexander E. Saak & Karen Kovarik & FAPRI Staff, 2002. "Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 02-wp317, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    3. Ruiz, Lilian M. & de Gorter, Harry, 2000. "The Impacts Of Export Subsidy Reduction Commitments In The Agreement On Agriculture," 2000 Annual meeting, July 30-August 2, Tampa, FL 21844, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Chau, Nancy H. & de Gorter, Harry, 2000. "Disentangling The Production And Export Consequences Of Direct Farm Income Payments," 2000 Annual meeting, July 30-August 2, Tampa, FL 21854, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Francois, Joseph & van Meijl, Hans & van Tongeren, Frank, 2003. "Trade Liberalization and Developing Countries Under the Doha Round," CEPR Discussion Papers 4032, C.E.P.R. Discussion Papers.
    6. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.
    7. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 445-470, December.
    8. Messerlin, Patrick, 2003. "Agriculture in the Doha Agenda," Policy Research Working Paper Series 3009, The World Bank.
    9. van Tongeren, Frank W. & van Meijl, Hans, 2006. "Multilateral Trade Liberalisation and Developing Countries: A North-South Perspective on Agriculture and Processing Sectors," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25462, International Association of Agricultural Economists.
    10. von Braun, Joachim & Wobst, Peter & Grote, Ulrike, 2002. ""Development Box" And Special And Differential Treatment For Food Security Of Developing Countries: Potentials, Limitations And Implementation Issues," Discussion Papers 18759, University of Bonn, Center for Development Research (ZEF).
    11. Hertel, Thomas W & Martin, Will, 2001. "Second-Best Linkages and the Gains from Global Reform of Manufactures Trade," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 215-32, May.
    12. Conforti, Piero & de Filippis, Fabrizio & Salvatici, Luca, 2002. "The Mid-Term Review Of The Common Agricultural Policy: Assessing The Effects Of The Commission Proposals," Working Papers 14802, National Institute of Agricultural Economics, Italy INEA, Osservatorio Sulle Politiche Agricole dell'UE.
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