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Open Wide: Vietnam’s Agricultural Trade Policy

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  • Vanzetti, David

Abstract

Vietnam is about to join the WTO. As a major exporter of rice, coffee, cashew nuts and pepper, accession to the WTO will have little impact on these export markets, as tariffs on these exports are already low. However, accession will require Vietnam to expose some of its inefficient agricultural sectors, such as sugar and maize, to international competition. Furthermore, multilateral reforms within the WTO are likely to raise prices of temperate product goods that are imported by Vietnam, worsening its terms of trade. A quantitative analysis of likely policy changes is undertaken assuming Vietnam’s accession terms are likely to bring its agricultural tariffs down to an average of 18 per cent. A likely WTO outcome is then simulated. The impacts suggest Vietnam gains from accession but further WTO liberalisation raises import prices and has a negative impact.

Suggested Citation

  • Vanzetti, David, 2006. "Open Wide: Vietnam’s Agricultural Trade Policy," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139916, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare06:139916
    DOI: 10.22004/ag.econ.139916
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    References listed on IDEAS

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    1. Nguyen, Hoa & Grote, Ulrike, 2004. "Agricultural Policies in Vietnam: Producer Support Estimates, 1986-2002," Discussion Papers 281276, University of Bonn, Center for Development Research (ZEF).
    2. Schmidt, Uwe, 2003. "Vietnam's accession to the WTO: A roadmap for a rational approach in trade liberalization," Duisburg Working Papers on East Asian Economic Studies 66, University Duisburg-Essen, Asia-Pacific Economic Research Institute (FIP).
    3. Prema‐chandra Athukorala, 2006. "Trade Policy Reforms and the Structure of Protection in Vietnam," The World Economy, Wiley Blackwell, vol. 29(2), pages 161-187, February.
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