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Impacts Of Doha Round On The Agribusiness Of Brazil, China And India

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  • Pereira, Matheus Wemerson Gomes
  • Teixeira, Erly Cardoso
  • Razap-Skorbiansky, Sharon

Abstract

The central themes to be addressed during the Doha Round of world trade negotiations are the reduction of the agricultural production and export subsidies, and improved market access for agricultural and non-agricultural goods. The G-20 group wields enough power to press negotiations at the Doha Round toward lower agricultural trade barriers and production and exports subsidies. The objective of this study is to determine the impacts of four possible Doha Round scenarios on the economies of Brazil, China, and India. The scenarios are examined using the Global Trade Analysis Project’s (GTAP) general equilibrium model and database. Scenarios focusing on the reduction of agricultural production and export subsidies are studied. The scenarios are then analyzed taking into account implementation of the Harbinson approach and the Swiss formula to tariff reduction. The best results obtained by Brazil, China, and India are those from the Scenario 4. In this scenario, WTO recommendations for agricultural production and export subsidies reduction are simulated and, at the same time, the Girard formula is applied to reduce agricultural import tariff and an average tariff cut is applied to manufactured products. Changes in GDP growth rate, in the per capita utility, and in the equivalent variation are higher under this scenario for Brazil, China, and India. The losses, due to low competitivity, by the EU15 and the US in the agricultural products in all analyzed scenarios are making it difficult to reach an agreement at the Doha Round of negotiations.

Suggested Citation

  • Pereira, Matheus Wemerson Gomes & Teixeira, Erly Cardoso & Razap-Skorbiansky, Sharon, 2008. "Impacts Of Doha Round On The Agribusiness Of Brazil, China And India," 46th Congress, July 20-23, 2008, Rio Branco, Acre, Brazil 112759, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    • Handle: RePEc:ags:sbrfsr:112759
    DOI: 10.22004/ag.econ.112759
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    References listed on IDEAS

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    1. Gurgel, Angelo Costa, 2006. "Impactos da liberação comercial de produtos do agronegócio na rodada de Doha," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 60(2), November.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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