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Agricultural Trade Policy: Completing the Reform


  • Timothy E. Josling


The Uruguay Round trade negotiations marked a historic turning point in the reform of agricultural trade. The Uruguay Round Agreement on Agriculture (URAA) replaced nontariff barriers with bound tariffs, curbed export subsidies, and codified domestic agricultural programs. Unfortunately, the URAA bound many of the tariffs that replaced nontariff barriers too high, it legitimized export subsidies, and it left the domestic farm policies of the major industrial countries largely untouched.Fortunately, regional trade institutions have also begun to grapple with agricultural trade liberalization. Agriculture was featured in the Mercosur agreement, in recent agreements between the European Union and the countries of Central and Eastern Europe, and in the North American Free Trade Area (NAFTA). Plans for broad supraregional trade structures, such as the Asia Pacific Economic Cooperation (APEC) forum and the Free Trade Area of the Americas (FTAA), have also dealt with the inclusion of agricultural trade. Meanwhile, in developing and middle-income countries, unilateral agricultural policy reforms have been part of recent economic policy changes. However, in the industrial countries, agricultural policy reform has languished in the face of much domestic opposition. But the reform of the European Union's Common Agricultural Policy (CAP) in 1992 and the 1996 Farm Bill in the United States seems to have ushered in a new era of relations between government and agricultural groups. The author points out ways that multilateral, regional, and unilateral paths could be coordinated to liberalized agricultural trade. He proposes a set of multilateral talks that would benefit from agricultural reform at all levels and complete the job begun at the Uruguay Round.

Suggested Citation

  • Timothy E. Josling, 1998. "Agricultural Trade Policy: Completing the Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa53.
  • Handle: RePEc:iie:ppress:pa53
    Note: Policy Analyses in International Economics 53

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    Cited by:

    1. Ravinder Rena, 2008. "WTO and Agricultural Trade – Some Issues and Perspectives," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 1, pages 49-60, December.
    2. Bernard Hoekman & Kym Anderson, 2000. "Developing-Country Agriculture and the New Trade Agenda," Economic Development and Cultural Change, University of Chicago Press, vol. 49(1), pages 171-180.
    3. Viju, Crina, 2010. "Are Agri-Food Trade Issues Changing?," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 11(1).
    4. Hunt, Warren & Birch, Colin & Vanclay, Frank & Coutts, Jeff, 2014. "Recommendations arising from an analysis of changes to the Australian agricultural research, development and extension system," Food Policy, Elsevier, vol. 44(C), pages 129-141.
    5. Marie-Ange VEGANZONES-VAROUDAKIS, 2000. "Market Access, Export Subsidies, Domestic Support and the WTO Negociations: a Review and Synthesis," Working Papers 200008, CERDI.
    6. Alan Matthews, 2000. "The WTO agricultural trade negotiations after Seattle," Trinity Economics Papers 20005, Trinity College Dublin, Department of Economics.
    7. Timothy Josling, 2000. "The agricultural negotiations: an overflowing agenda," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 53-76.
    8. Christilla Roederer-Rynning, 2003. "From 'Talking Shop' to 'Working Parliament'? The European Parliament and Agricultural Change," Journal of Common Market Studies, Wiley Blackwell, vol. 41(1), pages 113-135, March.
    9. Rae, A. & Josling, T., 2003. "Processed food trade and developing countries: protection and trade liberalization," Food Policy, Elsevier, vol. 28(2), pages 147-166, April.
    10. Walkenhorst, P., 2000. "Handelsliberalisierung, abgeleitete Produktnachfrage und die Wettbewerbsfähigkeit der Agrarwirtschaft," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 36.

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