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How Effective are WTO Disciplines on Domestic Support and Market Access for Agriculture?

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Author Info

  • Blandford, David

    ()
    (The Pennsylvania State University, University Park, PA, U.S.A.)

  • Gaasland, Ivar

    ()
    (Institute for Research in Economics and Business Administration,)

  • Garcia, Roberto

    ()
    (Norwegian University of Life Sciences)

  • Vårdal, Erling

    ()
    (University of Bergen)

Abstract

A new round of trade negotiations under the World Trade Organization (WTO) was launched in 2001. One of the major aims of the Doha Development Round is to reduce agricultural protection and impose greater discipline on domestic agricultural subsidies, particularly those that are the most trade distorting. In this paper we examine whether the proposed WTO modalities for agriculture will actually achieve this aim in Norway, which ranks among the top providers of government assistance for agriculture. Norway has a complex system of farm subsidies buttressed by substantial import protection. The extent to which its agricultural support policies will have to be changed in response to new WTO disciplines provides an important indication of how successful these are likely to be. We find that Norway will probably be able to sustain its current agricultural activity and production levels while staying within the new WTO rules. Following recent practice in some other WTO members, Norway will be able to reduce its notified support without making real changes in some of its programs. However, there will have to be a shift from market price support, which is paid for by consumers through higher food prices, to budgetary support paid by taxpayers and that could generate internal pressures for policy reform.

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Bibliographic Info

Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 03/09.

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Length: 36 pages
Date of creation: 31 Mar 2009
Date of revision:
Handle: RePEc:hhs:bergec:2009_003

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Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
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Web page: http://www.uib.no/econ/en
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Related research

Keywords: WTO; Doha-round; domestic support; market access; partial equilibrium model;

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  1. Gaasland, Ivar & Garcia, Robert & Vardal, Erling, 2008. "Norway: Shadow WTO agricultural domestic support notifications," IFPRI discussion papers 812, International Food Policy Research Institute (IFPRI).
  2. Godo, Yoshihisa & Takahashi, Daisuke, 2008. "Japan: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 822, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Blandford, David & Gaasland, Ivar & Vårdal, Erling, 2014. "GHG abatement welfare cost curves for Norwegian agriculture," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169734, Agricultural Economics Society.

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