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The WTO, Agricultural Trade Reform and the Environment: Nitrogen and Agro-chemical Indicators for the OECD

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  • Rae, Allan N.
  • Strutt, Anna

Abstract

The WTO Ministerial Statement of November 2001 mandates work on those situations where reduction of trade restrictions would benefit both trade and the environment. To contribute to such research, we use a modified version of the Global Trade Analysis Project (GTAP) model to estimate for OECD countries' changes in two environmental indicators resulting from simulated trade reforms: the impact on regional nitrogen balances, and associated changes in intensity of agro-chemical use. The trade reforms simulated lead to slightly improved nitrogen balances at the aggregate OECD level, with more ambitious trade reform resulting in a larger aggregate improvement. Most regions with a high initial per hectare nitrogen surplus are expected to experience some improvement in this environmental indicator at the national level. Cropping becomes less intensive in agro-chemical use in Western Europe and Northeast Asia, but more intensive in other OECD countries.

Suggested Citation

  • Rae, Allan N. & Strutt, Anna, 2007. "The WTO, Agricultural Trade Reform and the Environment: Nitrogen and Agro-chemical Indicators for the OECD," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 8(1), pages 1-22.
    • Handle: RePEc:ags:ecjilt:23933
    DOI: 10.22004/ag.econ.23933
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    References listed on IDEAS

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    2. Panxian Wang & Zimeng Ren & Guanghua Qiao, 2023. "How Does Agricultural Trade Liberalization Have Environmental Impacts? Evidence from a Literature Review," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    3. Tsigas, Marinos & Giamalva, John & Grossman, Nicholas & Kowalski, Joseph, 2008. "Commodity Trade Analysis in a General Equilibrium Framework BSE Restrictions on Beef Imports from the United States and Canada," Conference papers 331737, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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