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The Changing Structure of Domestic Support and Its Implications for Trade

Listed author(s):
  • Orden, David

Movement toward the objective of undistorted world agricultural markets has been set back by the lapse since 2008 of the WTO Doha Round negotiations. In the absence of a new agreement, constraints on distortionary agricultural domestic support remain lax. One might have expected policies of subsidizing farmers to have faded in the high-price environment since 2008. But that is not the case. In both the US and EU, agricultural support policy is under review and new options are being devised. Likewise, support for agriculture has increased in key emerging economies. In the US, in particular, the next farm bill likely will contain support measures that would have been harder to enact if a Doha Round agreement were coming into effect. This paper reviews these developments and their implications for trade and future trade negotiations. The WTO commitments of the BRIC countries (Brazil, Russia, India and China) and their levels of agricultural support are examined, including the domestic support commitments of Russia under its accession to the WTO in 2012.

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Paper provided by Canadian Agricultural Trade Policy Research Network in its series Commissioned Papers with number 146657.

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Date of creation: Feb 2013
Handle: RePEc:ags:catpcp:146657
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  1. Harry de Gorter & David R. Just & Jaclyn D. Kropp, 2008. "Cross-subsidization Due to Inframarginal Support in Agriculture: A General Theory and Empirical Evidence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 42-54.
  2. William M. Liefert & Olga Liefert, 2012. "Russian Agriculture during Transition: Performance, Global Impact, and Outlook," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(1), pages 37-75.
  3. Kym Anderson, 2013. "Agricultural price distortions: trends and volatility, past, and prospective," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 163-171, November.
  4. Cairns, Alexander P. & Meilke, Karl D., 2012. "Canadian Agrifood Export Performance and the Growth Potential of the BRICs and Next-11," Trade Policy Briefs 145973, Canadian Agricultural Trade Policy Research Network.
  5. Orden, David & Blandford, David & Josling, Timothy Edward & Brink, Lars, 2011. "WTO disciplines on agricultural support: Experience to date and assessment of Doha proposals," Research briefs 16, International Food Policy Research Institute (IFPRI).
  6. Lars Brink, 2009. "WTO Constraints on Domestic Support in Agriculture: Past and Future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 1-21, 03.
  7. Lubowski, Ruben N. & Bucholtz, Shawn & Claassen, Roger & Roberts, Michael J. & Cooper, Joseph C. & Gueorguieva, Anna & Johansson, Robert C., 2006. "Environmental Effects Of Agricultural Land-Use Change: The Role Of Economics And Policy," Economic Research Report 33591, United States Department of Agriculture, Economic Research Service.
  8. Huang, Jikun & Wang, Xiaobing & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott, 2011. "Subsidies and distortions in China’s agriculture: evidence from producer-level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), March.
  9. Richard Barichello & John Cranfield & Karl Meilke, 2009. "Options for the Reform of Supply Management in Canada with Trade Liberalization," Canadian Public Policy, University of Toronto Press, vol. 35(2), pages 203-217, June.
  10. Zahoor Haq & Karl Meilke, 2010. "Do the BRICs and Emerging Markets Differ in their Agrifood Imports?," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 1-14.
  11. Lars Brink & David Orden & Giselle Datz, 2013. "BRIC Agricultural Policies Through a WTO Lens," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 197-216, 02.
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