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Implications of Trade Liberalization and Domestic Reforms on EU Agricultural Markets

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  • Huan-Niemi, Ellen
  • Kerkela, Leena
  • Lehtonen, Heikki
  • Niemi, Jyrki S.

Abstract

The objective of this paper is to explore the overall effects of further trade liberalization and the implemented CAP reforms on EU agricultural production, imports and exports within different EU regions by using the Global Trade Analysis Project (GTAP) model. The GTAP model is used to compare a lower tariff reduction formula (EU Proposal) with a higher reduction formula (US Proposal) in order to show how sensitive the examined agricultural commodity/sector is to the different tariff reduction formulae. This analysis reveals that EU imports would escalate and EU exports would plummet with declining EU production because of trade liberalization and domestic policy reforms in the EU agricultural markets and sectors.

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Bibliographic Info

Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 12 (2009)
Issue (Month): 4 ()
Pages:

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Handle: RePEc:ags:ifaamr:92554

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Related research

Keywords: EU; WTO; CAP reforms; tariff reductions; export subsidies; Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Environmental Economics and Policy; Financial Economics; International Relations/Trade; Q1;

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References

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  1. Fabiosa, Jacinto F. & Beghin, John C. & Dong, Fengxia & Elobeid, Amani & Fuller, Frank H. & Hart, Chad E. & Matthey, Holger & Tokgoz, Simla & Yu, Tun-Hsiang & Wailes, Eric J., 2006. "U.S. Proposal for WTO Agriculture Negotiations: Its Impact on U.S. And World Agriculture," Staff General Research Papers 12488, Iowa State University, Department of Economics.
  2. 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.
  3. Antoine Bou�t & Simon Mevel & David Orden, 2007. "More or Less Ambition in the Doha Round: Winners and Losers from Trade Liberalisation with a Development Perspective," The World Economy, Wiley Blackwell, vol. 30(8), pages 1253-1280, 08.
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Cited by:
  1. Janne Niemi & Juha Honkatukia & Ville Kaitila & Markku Kotilainen, 2012. "Global trade and climate policy scenarios ? Impact on Finland," Working Papers 37, Government Institute for Economic Research Finland (VATT).
  2. Huan-Niemi, Ellen & Niemi, Janne & Niemi, Jyrki S., 2010. "Global Food Production under Alternative Scenarios," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 13(4).

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