Fabiosa, Jacinto F. Beghin, John C. DeCara, Stephane El Obeid, Amani Fang, Cheng Isik, Murat Matthey, Holger Saak, Alexander FAPRI Staff, University of Missouri, Columbia
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We investigate the impacts of multilateral removal of all border taxes and farm programs and their distortions on developing economies, using a world agriculture partial equilibrium model. We quantify changes in prices, trade flows, and production locations. Border measures and farm programs both affect world trade, but trade barriers have the largest impact. Following removal, trade expansion is substantial for most commodities, especially dairy, meats, and vegetable oils. Net agricultural and food exporters emerge with expanded exports; net importing countries with limited distortions before liberalization are penalized by higher world prices and reduced imports. We draw implications for current World Trade Organization negotiations.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
10056.
Length: Date of creation: 06 Nov 2002 Date of revision: Publication status: Published in Review of Agricultural Economics, September 2005, Vol. 27, No. 3, pp. 317-335. Handle: RePEc:isu:genres:10056
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