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Analyzing the trade effects of the Transatlantic Trade and Investment Partnership between the EU and the US: Do we need to care about agricultural domestic support?

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  • Urban, Kirsten
  • Boysen, Ole
  • Brockmeier, Martina
  • Engelbert, Tanja
  • Jensen, Hans Grinsted
  • Narayanan, Badri

Abstract

The EU and the US belong to the major providers of agricultural domestic support. However, in recent studies analyzing the effect of the Transatlantic Trade and Investment Partnership a potential effect of agricultural domestic support is not taken into consideration. Using an extended version of the standard GTAP modeling framework that considers a detailed representation of EU and US domestic support payments and estimated ad-valorem equivalents of non-tariff barriers, we analyze the effects of the potential outcome of the TTIP agreements between the EU and the US considering the impact of agricultural domestic support policies on the potential outcome of the agreement. Our analysis reveals how country-specific agricultural policies can influence the results of bilateral trade agreements. We shed light on the costs and benefits of disciplining domestic support in the TTIP negotiations and contribute to the discussion whether the EU and US should consider further domestic support disciplines to foster trade between the EU and US and increase potential gains from TTIP and in addition fill a pioneering role in the multilateral negotiations.

Suggested Citation

  • Urban, Kirsten & Boysen, Ole & Brockmeier, Martina & Engelbert, Tanja & Jensen, Hans Grinsted & Narayanan, Badri, 2016. "Analyzing the trade effects of the Transatlantic Trade and Investment Partnership between the EU and the US: Do we need to care about agricultural domestic support?," Conference papers 332749, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332749
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    References listed on IDEAS

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    1. Soamiely Andriamananjara & Michael Ferrantino & Marinos Tsigas, 2005. "Alternative Approaches In Estimating The Economic Effects Of Non-Tariff Measures: Results From Newly Quantified Measures," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 19, pages 525-540, World Scientific Publishing Co. Pte. Ltd..
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