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Re‐evaluating the Harbinson Proposal – Prospects for the EU25: A Note

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  • G. Philippidis
  • L. J. Hubbard
  • A. Renwick

Abstract

In this study, we use the Harbinson Proposal and July Framework to compare a ‘likely’ Doha scenario with a realistic baseline. The novelty of this study is that we focus exclusively on the trade‐led welfare impacts in selected EU member states. The important features of this note are the: (i) usage of the latest Global Trade Analysis Project (version 6) data; (ii) focus on EU25 regions incorporating all major Common Agricultural Policy instruments and reforms; and (iii) inclusion of binding tariff overhangs into the Harbinson tariff reductions. Results show the damping effects of tariff‐binding overhangs on welfare outcomes. This and other factors which limit the gains to liberalisation mean that the EU25 only realises 10% of its long‐run welfare gain potential, as defined by complete liberalisation.

Suggested Citation

  • G. Philippidis & L. J. Hubbard & A. Renwick, 2007. "Re‐evaluating the Harbinson Proposal – Prospects for the EU25: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 368-375, June.
    • Handle: RePEc:bla:jageco:v:58:y:2007:i:2:p:368-375
    DOI: 10.1111/j.1477-9552.2007.00094.x
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    References listed on IDEAS

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    1. Frank Ackerman, "undated". "The Shrinking Gains from Trade: A Critical Assessment of Doha Round Projections," GDAE Working Papers 05-01, GDAE, Tufts University.
    2. Philippidis, George & Hubbard, Lionel J. & Renwick, Alan W., 2006. "A CGE Analysis of the Harbinson Proposal: Outcomes for the EU25," Working Papers 45992, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Yu, Wusheng & Jensen, Hans Grinsted, 2005. "Multilateral Market-Access Reforms of the Doha Round: A Preliminary Assessment of Implications for EU Agricultural Trade," ENARPRI Working Papers 25138, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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