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Reducing Agriculture Tariffs Versus Domestic Support: What's More Important for Developing Countries?

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  • Hoekman, Bernard
  • Ng, Francis
  • Olarreaga, Marcelo

Abstract

High levels of protection and domestic support for farmers in developed countries significantly affect many least developed countries (LDCs), both directly and through the price-depressing effect of agricultural support policies. High tariffs and domestic support may also lower the world price of agricultural products, benefiting net importers. This Paper assesses the impact of reducing these distortionary policies for a sample of 119 countries. We find significant differences in the impact of a 50 percent cut in tariffs and a 50 cut in domestic support for LDCs as compared to non-LDC developing countries. However, for both groups of countries tariff reductions have a much greater positive effect on exports and welfare.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3576.

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Date of creation: Oct 2002
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Handle: RePEc:cpr:ceprdp:3576

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Related research

Keywords: agriculture trade; developing countries; subsidies; tariffs; trade negotiations; WTO;

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References

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  1. Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003. "The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?," The World Economy, Wiley Blackwell, vol. 26(6), pages 829-851, 06.
  2. Hoekman, Bernard, 2002. "Strengthening the global trade architecture for development: the post Doha agenda," World Trade Review, Cambridge University Press, Cambridge University Press, vol. 1(01), pages 23-45, March.
  3. Paul Brenton & Miriam Manchin, 2003. "Making EU Trade Agreements Work: The Role of Rules of Origin," The World Economy, Wiley Blackwell, vol. 26(5), pages 755-769, 05.
  4. Joachim Zietz, 1986. "The potential benefits to LDCs of trade liberalization in beef and sugar by industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 122(1), pages 93-112, March.
  5. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2747, C.E.P.R. Discussion Papers.
  6. repec:wii:bpaper:bowp:027 is not listed on IDEAS
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Cited by:
  1. Margaret McMillan & Alix Peterson Zwane & Nava Ashraf, 2005. "My Policies or Yours: Does OECD Support for Agriculture Increase Poverty in Developing Countries?," NBER Working Papers 11289, National Bureau of Economic Research, Inc.
  2. Bernard Hoekman & David Vines, 2007. "Multilateral trade cooperation: what next?," Oxford Review of Economic Policy, Oxford University Press, vol. 23(3), pages 311-334, Autumn.
  3. Porto, Guido G., 2003. "Trade reforms, market access, and poverty in Argentina," Policy Research Working Paper Series 3135, The World Bank.
  4. Lionel Fontagné, 2003. "Market Access and Domestic Support Measures," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 4(3), pages 3-10, October.

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