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Agricultural Markets Liberalization And The Doha Round

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  • Fabiosa, Jacinto F.
  • Beghin, John C.
  • de Cara, Stephane
  • Fang, Cheng
  • Isik, Murat
  • Matthey, Holger

Abstract

Using a partial equilibrium model of world agriculture, we investigate the multilateral removal of all border taxes and farm programs and their distortion of world agricultural markets. These distortions have significant terms-of-trade effects. World trade is also significantly impacted by both types of distortions. Trade expansion is substantial for most commodities, especially dairy, meats, and vegetable oils. Net agricultural and food exporters (Brazil, Australia, and Argentina) emerge with expanded exports; whereas net importing countries with limited distortions before liberalization are penalized by higher world markets prices and reduced imports. The US gains significant export shares in livestock products and imports more dairy products. Without protection and domestic subsidies, the EU loses many of its livestock and dairy export markets.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25875.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25875

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Web page: http://www.iaae-agecon.org/
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Related research

Keywords: Doha; Agriculture; trade liberalization; domestic policy; International Relations/Trade;

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  1. Diao, Xinshen & Elbehri, Aziz & Gehlhar, Mark J. & Gibson, Paul R. & Leetmaa, Susan E. & Mitchell, Lorraine & Nelson, Frederick J. & Nimon, R. Wesley & Normile, Mary Anne & Roe, Terry L. & Shapouri, S, 2001. "Agricultural Policy Reform In The Wto: The Road Ahead," Agricultural Economics Reports 34015, United States Department of Agriculture, Economic Research Service.
  2. Kennedy, P. Lynn & Brink, Lars & Dyck, John H. & MacLaren, Donald, 2001. "Domestic Support: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14622, International Agricultural Trade Research Consortium.
  3. Bruce A. Babcock & John C. Beghin & Jacinto F. Fabiosa & Stephane De Cara & Amani Elobeid & Cheng Fang & Chad E. Hart & Murat Isik & Holger Matthey & Alexander E. Saak & Karen Kovarik & FAPRI Staff, 2002. "Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 02-wp317, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  4. Alan Matthews, 2002. "Les pays en développement et les négociations de l'OMC sur la libéralisation des échanges agricoles," Économie rurale, Programme National Persée, vol. 267(1), pages 5-18.
  5. Stefan Tangermann, 2001. "L'Accord sur l'Agriculture de l'Uruguay Round fonctionne-t-il ?," Economie Internationale, CEPII research center, issue 87, pages 15-44.
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Cited by:
  1. Armando Castelar Pinheiro & Regis Bonelli, 2007. "Comparative Advantage or Economic Policy? Stylized Facts and Reflections on Brazil´s Insertion in the World Economy - 1994 - 2005," Discussion Papers 1275, Instituto de Pesquisa Econômica Aplicada - IPEA.
  2. Brockmeier, Martina & Salamon, Petra, 2004. "Handels- und Budgeteffekte der WTO-Agrarverhandlungen in der Doha-Runde: Der revidierte Harbinson-Vorschlag," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 53(6).

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