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Where is the balance? Implications of adopting Special Products and Sensitive Products in Doha negotiations for world and China's agriculture

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  • Yang, Jun
  • Huang, Jikun
  • Rozelle, Scott
  • Martin, Will

Abstract

This paper analyzes the potential impacts of the agreements of Special Products and Sensitive Products (SPs) in Doha negotiations on world and China's Agriculture. By linking a global trade model to a national policy model which itself is connected to a set of disaggregated household data, we are able to assess the effects of the inclusion of SPs into a Doha agreement on agriculture in China and the rest of the world and different farmers across China. Our results show that since the inclusion of SPs in a Doha agreement adds more protection in agriculture, the total quantity of resources used in world agriculture increases. Although increasing, it is important to note that the total rise is only a fraction of a percent of agricultural value added and the gains to rural income per capita are likewise small. Moreover, an important difference between the apparent benefits of SPs is highlighted when they are considered for one country alone and when they are made available to all WTO members. The benefits to agriculture in China (and other countries) from increases in protection resulting from SPs are typically offset when these flexibilities are made available to all countries. While there are some positive benefits for certain vulnerable groups in society (in China), we show that there are adverse effects on equity and the impacts differ largely among regions.

Suggested Citation

  • Yang, Jun & Huang, Jikun & Rozelle, Scott & Martin, Will, 2012. "Where is the balance? Implications of adopting Special Products and Sensitive Products in Doha negotiations for world and China's agriculture," China Economic Review, Elsevier, vol. 23(3), pages 651-664.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:651-664
    DOI: 10.1016/j.chieco.2010.06.009
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    References listed on IDEAS

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    1. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1, May.
    2. Yang, Jun & Huang, Jikun & Rozelle, Scott & Martin, William J., 2009. "Implications of Adopting Special Products and Sensitive Products in Doha Negotiations for World and China’s Agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51650, International Association of Agricultural Economists.
    3. Anderson, Kym & Huang, Jikun & Ianchovichina, Elena, 2004. "Will China's WTO accession worsen farm household incomes?," China Economic Review, Elsevier, vol. 15(4), pages 443-456.
    4. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters,in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314 World Scientific Publishing Co. Pte. Ltd..
    5. Huang, Jikun & Jun, Yang & Xu, Zhigang & Rozelle, Scott & Li, Ninghui, 2007. "Agricultural trade liberalization and poverty in China," China Economic Review, Elsevier, vol. 18(3), pages 244-265.
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    11. Daniel H. Rosen & Scott Rozelle & Jikan Huang, 2004. "Roots of Competitiveness: China's Evolving Agriculture Interests," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa72.
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    More about this item

    Keywords

    Doha trade liberalization; Special Products and Sensitive Products; Poverty alleviation; General equilibrium model; Regional impacts;

    JEL classification:

    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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