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The Phasing out of EU Agricultural Export Subsidies: Impacts of Two Management Schemes


  • Alexandre Gohin
  • Patrice Gautier


The present round of multilateral trade negotiations at the World Trade Organisation is likely to put an end to European export subsidies on agricultural and food products. This paper attempts to evaluate such a policy scenario. Its main contribution is to compare two management schemes for the European Union economy. The first one has confidence in the equilibrium role of market prices while the second one favours a supply management approach. Our empirical results, based on a computable general equilibrium model, show huge effects on the dairy sector and reveal that the choice of a management scheme has a substantial bearing on sectoral welfare effects.

Suggested Citation

  • Alexandre Gohin & Patrice Gautier, 2005. "The Phasing out of EU Agricultural Export Subsidies: Impacts of Two Management Schemes," Economie Internationale, CEPII research center, issue 101, pages 5-27.
  • Handle: RePEc:cii:cepiei:2005-1qa

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    References listed on IDEAS

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    Cited by:

    1. Andrew Muhammad & Richard L. Kilmer, 2008. "The impact of EU export subsidy reductions on U.S. dairy exports," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 557-574.

    More about this item


    WTO; CAP; trade policy; agriculture; CGEM; trade negotiations; international trade; common agricultural policy; export subsidies; supply management;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue


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