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Implications of Trade Liberalization and Domestic Reforms on EU Agricultural Markets

Author

Listed:
  • Huan-Niemi, Ellen
  • Kerkela, Leena
  • Lehtonen, Heikki
  • Niemi, Jyrki S.

Abstract

The objective of this paper is to explore the overall effects of further trade liberalization and the implemented CAP reforms on EU agricultural production, imports and exports within different EU regions by using the Global Trade Analysis Project (GTAP) model. The GTAP model is used to compare a lower tariff reduction formula (EU Proposal) with a higher reduction formula (US Proposal) in order to show how sensitive the examined agricultural commodity/sector is to the different tariff reduction formulae. This analysis reveals that EU imports would escalate and EU exports would plummet with declining EU production because of trade liberalization and domestic policy reforms in the EU agricultural markets and sectors.

Suggested Citation

  • Huan-Niemi, Ellen & Kerkela, Leena & Lehtonen, Heikki & Niemi, Jyrki S., 2009. "Implications of Trade Liberalization and Domestic Reforms on EU Agricultural Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 12(4).
  • Handle: RePEc:ags:ifaamr:92554
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    File URL: http://purl.umn.edu/92554
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    References listed on IDEAS

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    1. FAPRI Staff, 2005. "U.S. Proposal for WTO Agriculture Negotiations: Its Impact on U.S. and World Agriculture," Center for Agricultural and Rural Development (CARD) Publications 05-wp417, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    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. Antoine Bouët & Simon Mevel & David Orden, 2007. "More or Less Ambition in the Doha Round: Winners and Losers from Trade Liberalisation with a Development Perspective," The World Economy, Wiley Blackwell, vol. 30(8), pages 1253-1280, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Francesco CARACCIOLO & Elisabetta GOTOR & Fabio Gaetano SANTERAMO, 2014. "European Common Agricultural Policy Impacts On Developing Countries Commodities Prices," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    2. Huan-Niemi, Ellen & Niemi, Janne & Niemi, Jyrki S., 2010. "Global Food Production under Alternative Scenarios," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 13(4).
    3. Honkatukia, Juha & Kaitila, Ville & Kotilainen, Markku & Niemi, Janne, 2012. "Global trade and climate policy scenarios – Impact on Finland," Working Papers 37, VATT Institute for Economic Research.

    More about this item

    Keywords

    EU; WTO; CAP reforms; tariff reductions; export subsidies; Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Environmental Economics and Policy; Financial Economics; International Relations/Trade; Q1;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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