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The Effects Of Alternative Proposals On Export Subsidies To Agricultural Products In The Current Wto Round

  • Conforti, Piero
  • Velazquez, Beatriz E.
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    The paper is aimed at assessing the impact of reducing and/or eliminating EU export subsidies within the next WTO round. The Global Trade Analysis Project (GTAP) model and database are employed to study the effects of the two main proposals put forward in the Doha Round on this matter by the EU and the US. Results of the simulations confirm the common knowledge that the elimination of EU export subsidies would imply increasing prices, exports and production for several net exporters of agricultural products. At the same time, such effects are all relatively small in size, particularly on trade, production and welfare, even under the more radical scenario that simulates the elimination of export subsidies. Despite some net importing countries would suffer from a more expensive import bills, benefits may arise for some of them in terms of incentives to substitute imports with domestic production. This is the case of the Mediterranean region, and to a lower extent of Sub Saharan Africa.

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    Paper provided by National Institute of Agricultural Economics, Italy INEA, Osservatorio Sulle Politiche Agricole dell'UE in its series Working Papers with number 14801.

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    Date of creation: 2003
    Date of revision:
    Handle: RePEc:ags:ineawp:14801
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    1. Francois, Joseph & van Meijl, Hans & van Tongeren, Frank, 2003. "Trade Liberalization and Developing Countries Under the Doha Round," CEPR Discussion Papers 4032, C.E.P.R. Discussion Papers.
    2. Conforti, Piero & de Filippis, Fabrizio & Salvatici, Luca, 2002. "The Mid-Term Review Of The Common Agricultural Policy: Assessing The Effects Of The Commission Proposals," Working Papers 14802, National Institute of Agricultural Economics, Italy INEA, Osservatorio Sulle Politiche Agricole dell'UE.
    3. Messerlin, Patrick, 2003. "Agriculture in the Doha Agenda," Policy Research Working Paper Series 3009, The World Bank.
    4. van Tongeren, Frank W. & van Meijl, Hans, 2006. "Multilateral Trade Liberalisation and Developing Countries: A North-South Perspective on Agriculture and Processing Sectors," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25462, International Association of Agricultural Economists.
    5. Ruiz, Lilian M. & de Gorter, Harry, 2000. "The Impacts Of Export Subsidy Reduction Commitments In The Agreement On Agriculture," 2000 Annual meeting, July 30-August 2, Tampa, FL 21844, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.
    7. von Braun, Joachim & Wobst, Peter & Grote, Ulrike, 2002. ""Development Box" And Special And Differential Treatment For Food Security Of Developing Countries: Potentials, Limitations And Implementation Issues," Discussion Papers 18759, University of Bonn, Center for Development Research (ZEF).
    8. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, April.
    9. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
    10. Hertel, Thomas W & Martin, Will, 2001. "Second-Best Linkages and the Gains from Global Reform of Manufactures Trade," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 215-32, May.
    11. Chau, Nancy H. & de Gorter, Harry, 2000. "Disentangling The Production And Export Consequences Of Direct Farm Income Payments," 2000 Annual meeting, July 30-August 2, Tampa, FL 21854, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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