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EU dairy policy and WTO negotiations

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  • Bouamra-Mechemache, Zohra
  • Requillart, Vincent

Abstract

The EU dairy sector is facing a period of significant changes that are due to three major decisions: the EU enlargement, the Luxemburg reform and on-going WTO negotiations. In this paper, we focus on the analysis of changes in both domestic and trade dairy policies using a spatial model of the dairy sector that includes EU25 member countries, the modelling of the rest of the world including the main world dairy exporter (Oceania) and 4 importing areas (Africa, America, Asia and the Rest of Europe). The paper provides detailed results with respect to dairy markets in the EU. We show that in the context of the Luxemburg reform, the WTO might have positive impacts on EU milk price. The positive impact on EU milk price of a reduction of the tariffs in the importing countries exceeds the negative one of removing export subsidies as well as lowering EU import tariffs. We explore the sensitivity of the results to alternative assumptions on demand for dairy products, EU competitiveness and price transmission in the dairy chain.

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File URL: http://purl.umn.edu/10105
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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece with number 10105.

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Date of creation: 2006
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Handle: RePEc:ags:eaae98:10105

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Related research

Keywords: WTO; agricultural policy; dairy industry; partial equilibrium model; Agricultural and Food Policy; International Relations/Trade;

References

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  1. Chavas, Jean-Paul & Cox, Thomas L. & Jesse, Edward, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 18(1), January.
  2. Zohra Bouamra-Mechemache & Jean-Paul Chavas & Tom Cox & Vincent Réquillart, 2002. "EU Dairy Policy Reform and Future WTO Negotiations: a Spatial Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 233-257.
  3. Zohra Bouamra-Mechemache & Héla Hadj Ali-Kein & Vincent Réquillart, 2003. "L'impact sur les marchés du lait et des produits laitiers de l'accord de Luxembourg," INRA Sciences Sociales, INRA Department of Economics.
  4. Chavas, Jean-Paul & Cox, Thomas L. & Jesse, Edward, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, Blackwell, vol. 18(1), pages 1-19, January.
  5. Zohra Bouamra-Mechemache & Jean-Paul Chavas & Thomas L. Cox & Vincent Réquillart, 2002. "Partial Market Liberalization and the Efficiency of Policy Reform: The Case of the European Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1003-1020.
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Cited by:
  1. Lelyon, Baptiste & Daniel, Karine & Chatellier, Vincent, 2008. "Decoupling and prices: determinant of dairy farmers’ choices? A model to analyse impacts of the 2003 CAP reform," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44250, European Association of Agricultural Economists.

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