Agricultural trade reform and poverty reduction in developing countries
AbstractThis paper offers an economic assessment of the opportunities and challenges provided by the WTO’s Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty, economic growth and trade, it reports modelling results showing that farm product markets remain the most costly of all goods market distortions in world trade. It focuses on what such reform might mean for developing countries both without and with their involvement in the multilateral trade negotiations. What becomes clear is that if those countries want to maximize their benefits from the Doha round, they need also to free up their own domestic product and factor markets so their farmers are better able to take advantage of new market-opening opportunities abroad. Other concerns of low-income countries about farm trade reform also are addressed: whether there would be losses associated with tariff preference erosion, whether food-importing countries would suffer from higher food prices in international markets, whether China’s WTO accession will provide an example of trade reform aggravating poverty via cuts to prices received by Chinese farmers, and the impact on food security and poverty alleviation.
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Bibliographic InfoPaper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp014.
Date of creation: 01 Jan 2004
Date of revision:
WTO; agricultural protection; trade liberalization; poverty alleviation;
Other versions of this item:
- Kym Anderson, 2002. "Agricultural Trade Reform and Poverty Reduction in Developing Countries," Centre for International Economic Studies Working Papers 2002-34, University of Adelaide, Centre for International Economic Studies.
- Anderson, Kym, 2004. "Agricultural trade reform and poverty reduction in developing countries," Policy Research Working Paper Series 3396, The World Bank.
- TF0 - - - - - -
- FUN - International Economics - - - - -
- OPE - Economic Development, Technological Change, and Growth - - - - -
This paper has been announced in the following NEP Reports:
- NEP-AGR-2004-06-02 (Agricultural Economics)
- NEP-ALL-2004-05-09 (All new papers)
- NEP-DEV-2004-05-09 (Development)
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