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Making Sense Of Agricultural Trade Policy Reform

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  • Vanzetti, David
  • Peters, Ralf

Abstract

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.

Suggested Citation

  • Vanzetti, David & Peters, Ralf, 2003. "Making Sense Of Agricultural Trade Policy Reform," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25858, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25858
    DOI: 10.22004/ag.econ.25858
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    File URL: https://ageconsearch.umn.edu/record/25858/files/cp03va04.pdf
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    1. World Bank, 2001. "Global Economic Prospects and the Developing Countries 2001," World Bank Publications - Books, The World Bank Group, number 14779, December.
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    Cited by:

    1. Qasmi, Bashir & Van der Sluis, Evert, 2008. "Review and Analysis of International and Budgetary Considerations for the 2007 U.S. Farm Bill," Staff Papers 080001, South Dakota State University, Department of Economics.
    2. Qasmi, Bashir A. & Van der Sluis, Evert, 2008. "Review and Analysis of International and Budgetary Considerations for the 2007 U.S. Farm Bill," Economics Staff Papers 6761, South Dakota State University, Department of Economics.
    3. Gabriele, Alberto & Vanzetti, David, 2005. "Long Black: Surviving the coffee crisis," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137867, Australian Agricultural and Resource Economics Society.
    4. Bussolo, Maurizio & Mensbrugghe, Dominique van der & Lay, Jann, 2005. "Trade options for Latin America. A Poverty Assessment Using Macro-Micro Linkages," Conference papers 331405, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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