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Political Economy of Trade Policy Trends and Aberrations

In: Agricultural Trade, Policy Reforms, and Global Food Security

Author

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  • Kym Anderson

    (University of Adelaide
    Australian National University)

Abstract

Understandable domestic political forces drive countries to transition from negative to positive assistance to farmers as their per capita incomes grow and the agricultural sector becomes less significant. They also explain why countries partially insulate their domestic markets from spikes in international food prices. Trade policies pervade as a means of altering both the trend level and fluctuations in domestic food prices, despite being far from the most efficient or equitable instruments for averting short- or long-term losses to significant groups. Given the large gap between their tariff bindings and their actual applied rates, developing countries’ legal commitments in the WTO will not be enough to stop that tendency in the foreseeable future—even if the WTO’s Doha round had resulted in a comprehensive agreement.

Suggested Citation

  • Kym Anderson, 2016. "Political Economy of Trade Policy Trends and Aberrations," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Trade, Policy Reforms, and Global Food Security, chapter 0, pages 207-224, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-1-137-46925-0_9
    DOI: 10.1057/978-1-137-46925-0_9
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