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The Phasing out of EU Agricultural Export Subsidies: Impacts of Two Management Schemes

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  • Alexandre Gohin
  • Patrice Gautier

Abstract

The present round of multilateral trade negotiations at the World Trade Organisation is likely to put an end to European export subsidies on agricultural and food products. This paper attempts to evaluate such a policy scenario. Its main contribution is to compare two management schemes for the European Union economy. The first one has confidence in the equilibrium role of market prices while the second one favours a supply management approach. Our empirical results, based on a computable general equilibrium model, show huge effects on the dairy sector and reveal that the choice of a management scheme has a substantial bearing on sectoral welfare effects.

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Bibliographic Info

Article provided by CEPII research center in its journal Economie Internationale.

Volume (Year): (2005)
Issue (Month): 101 ()
Pages: 5-27

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Handle: RePEc:cii:cepiei:2005-1qa

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Related research

Keywords: WTO; CAP; trade policy; agriculture; CGEM; trade negotiations; international trade; common agricultural policy; export subsidies; supply management;

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Cited by:
  1. Andrew Muhammad & Richard L. Kilmer, 2008. "The impact of EU export subsidy reductions on U.S. dairy exports," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 557-574.

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