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Dispelling Some Misconceptions about Agricultural Trade Liberalization

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  • Stephen Tokarick

Abstract

There has been a great deal of public discussion over the impact that agricultural trade liberalization would likely have, especially on low-income countries. Unfortunately, the public discussion has been characterized by a number of misconceptions. This paper provides a clarifying discussion of the issues involved. Among the key points addressed are 1) agricultural "subsidies" are not nearly as large as has been portrayed; 2) tariffs are actually far more distortionary than subsidies and some low-income countries actually benefit from rich country subsides; and 3) widespread tariff reductions will not inflict large damage on developing countries as a result of preference erosion. The case for removing agricultural trade barriers remains compelling, even without the exaggerations and misconceptions.

Suggested Citation

  • Stephen Tokarick, 2008. "Dispelling Some Misconceptions about Agricultural Trade Liberalization," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 199-216, Winter.
    • Handle: RePEc:aea:jecper:v:22:y:2008:i:1:p:199-216
    Note: DOI: 10.1257/jep.22.1.199
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.22.1.199
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    References listed on IDEAS

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    1. Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," World Trade Review, Cambridge University Press, vol. 5(3), pages 357-376, November.
    2. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
    3. Kym Anderson & Ernesto Valenzuela, 2007. "The World Trade Organisation's Doha Cotton Initiative: A Tale of Two Issues," The World Economy, Wiley Blackwell, vol. 30(8), pages 1281-1304, August.
    4. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889, December.
    5. Mr. Hans P Lankes & Miss Katerina Alexandraki, 2004. "The Impact of Preference Erosionon Middle-Income Developing Countries," IMF Working Papers 2004/169, International Monetary Fund.
    6. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
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    1. Hosaki Kono, 2011. "Economic Integration and Poverty," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 16, Edward Elgar Publishing.
    2. Mary, Sébastien, 2018. "Does Agricultural (Food) Trade Openness Reduce Child Stunting?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274282, Agricultural and Applied Economics Association.
    3. repec:unt:escsti:sti84 is not listed on IDEAS
    4. Abbott, Philip & Bentzen, Jeanet & Tarp, Finn, 2009. "Trade and Development: Lessons from Vietnam's Past Trade Agreements," World Development, Elsevier, vol. 37(2), pages 341-353, February.
    5. Rakotoarisoa, Manitra A., 2011. "The impact of agricultural policy distortions on the productivity gap: Evidence from rice production," Food Policy, Elsevier, vol. 36(2), pages 147-157, April.
    6. Sébastien Mary, 2019. "Hungry for free trade? Food trade and extreme hunger in developing countries," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(2), pages 461-477, April.
    7. Muhammad Tariq Majeed & Amna Malik, 2016. "E-government, Economic Growth and Trade: A Simultaneous Equation Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 499-519.
    8. Jorge Tovar & Eduardo Uribe, 2008. "Reflexiones sobre el crecimiento de largo plazo del sector agrícola en Colombia," Documentos CEDE 4984, Universidad de los Andes, Facultad de Economía, CEDE.

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