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Agricultural Policies and the GATT: Reconciling Protection, Support and Distortion

Author

Listed:
  • de Gorter, Harry
  • Harvey, David R.

Abstract

This paper analyzes the relationship between the theory of protection, farm income support and international trade distortion. To parallel those of protection, a measure of distortion is derived which compares trade volumes under support policies with those which would occur under multilateral free trade. Estimates are made of these measures for the European Community and the United States for a selection of commodities. The relationship between measures of protection and economic efficiency is also highlighted. The conclusion is that present measures of protection such as the Producer Subsidy Equivalent are confusing as measures of either trade distortion or income support. Some implications are drawn for the GAIT negotiations on agriculture and for the design of domestic policies which minimize trade distortion.

Suggested Citation

  • de Gorter, Harry & Harvey, David R., 1990. "Agricultural Policies and the GATT: Reconciling Protection, Support and Distortion," Working Papers 51153, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatrwp:51153
    DOI: 10.22004/ag.econ.51153
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    File URL: https://ageconsearch.umn.edu/record/51153/files/90-6.pdf
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    Cited by:

    1. DeRosa, Dean A., 1996. "The Uruguay Round Agreement On Agriculture And The International Trade Of Sub-Saharan Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(2), June.
    2. Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW Kiel).

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