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Modelling the impacts of multilateral agricultural trade liberalization on the EU

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  • Niemi, Jyrki S.
  • Kerkela, Leena
  • Lehtonen, Heikki

Abstract

The objective of this paper is to explore the implications of domestic policy reforms and trade liberalisation on EU and global agricultural markets by utilising the GTAP model. The results suggest that CAP reforms in conjunction with the removal of export subsidies and tariff reductions according to the proposals from the EU and the US in the WTO would decrease EU's production, reduce EU's exports, and increase EU's imports in almost all the examined agricultural products. For countries such as Australia, the US, and the MERCOSUR group, higher world prices stimulate domestic agricultural production, partly offsetting the EU output decline.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44334.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44334

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Keywords: EU; WTO; tariff reductions; export subsidies; CAP reforms; GTAP model; International Relations/Trade;

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  1. Westhoff, Patrick C. & Fabiosa, Jacinto F. & Beghin, John C. & Meyers, William H., 2004. "Challenges in Modeling the Effects of Trade Agreements on the Agricultural Sector," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(02), August.
  2. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440.
  3. repec:jaa:jagape:v:36:y:2004:i:2:p:383-393 is not listed on IDEAS
  4. C. F. Bach & S. E. Frandsen & H. G. Jensen, 2000. "Agricultural and Economy-Wide Effects of European Enlargement: Modelling the Common Agricultural Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 162-180.
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