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The WTO, Agricultural Trade Reform and the Environment: Nitrogen and Agro-chemical Indicators for the OECD

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Author Info

  • Rae, Allan N.
  • Strutt, Anna

Abstract

The WTO Ministerial Statement of November 2001 mandates work on those situations where reduction of trade restrictions would benefit both trade and the environment. To contribute to such research, we use a modified version of the Global Trade Analysis Project (GTAP) model to estimate for OECD countries' changes in two environmental indicators resulting from simulated trade reforms: the impact on regional nitrogen balances, and associated changes in intensity of agro-chemical use. The trade reforms simulated lead to slightly improved nitrogen balances at the aggregate OECD level, with more ambitious trade reform resulting in a larger aggregate improvement. Most regions with a high initial per hectare nitrogen surplus are expected to experience some improvement in this environmental indicator at the national level. Cropping becomes less intensive in agro-chemical use in Western Europe and Northeast Asia, but more intensive in other OECD countries.

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File URL: http://purl.umn.edu/23933
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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): 08 (2007)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:ecjilt:23933

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Related research

Keywords: agriculture; agro-chemicals; nitrogen balance; general equilibrium modelling; trade liberalisation; International Relations/Trade;

References

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  1. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Society for Computational Economics, vol. 9(2), pages 83-127, May.
  2. Allan Rae & Anna Strutt, 2001. "Livestock production and the environment: Some impacts of growth and trade liberalisation," New Zealand Economic Papers, Taylor & Francis Journals, vol. 35(2), pages 176-194.
  3. S¯ren E. Frandsen & Hans G. Jensen & Wusheng Yu & Aage Walter-J¯rgensen, 2003. "Reform of EU sugar policy: price cuts versus quota reductions," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 1-26, March.
  4. Karl Meilke & Rakhal Sarker & Danny Roy, 1998. "The Potential for Increased Trade in Milk and Dairy Products between Canada and the United States under Trade Liberalization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(2), pages 149-169, 07.
  5. Anna Strutt & Kym Anderson, 2000. "Will Trade Liberalization Harm the Environment? The Case of Indonesia to 2020," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(3), pages 203-232, November.
  6. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17.
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