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Making Sense Of Agricultural Trade Policy Reform

  • Vanzetti, David
  • Peters, Ralf

Proposals for agricultural trade reform put forward by the main protagonists remain far apart, with little sign of convergence. In an attempt to progress the negotiations towards a successful outcome, the chairman of the WTO Committee on Agriculture has proposed a compromise. The alternative proposals by the United States, the European Union and the WTO are analysed with the Agricultural Trade Policy Simulation Model, a static, multi-commodity, multi-region, partial equilibrium trade model. The estimated annual global welfare gains are $26 billion, $12 billion and $17 billion respectively. Least developed countries, as a group, gain from the US proposal but are made worse off under the WTO and EU proposals. Furthermore, in the best case many individual countries experience welfare losses. However, all countries enjoy increased export revenues and tariff revenues hold up quite well under the two less stringent proposals.

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File URL: http://purl.umn.edu/25858
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Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25858.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25858
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  1. World Bank, 2001. "Global Economic Prospects and the Developing Countries 2001," World Bank Publications, The World Bank, number 14779.
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