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Agricultural Policy Reform In The Wto: The Road Ahead


  • Diao, Xinshen
  • Elbehri, Aziz
  • Gehlhar, Mark J.
  • Gibson, Paul R.
  • Leetmaa, Susan E.
  • Mitchell, Lorraine
  • Nelson, Frederick J.
  • Nimon, R. Wesley
  • Normile, Mary Anne
  • Roe, Terry L.
  • Shapouri, Shahla
  • Skully, David W.
  • Smith, Mark
  • Somwaru, Agapi
  • Trueblood, Michael A.
  • Tsigas, Marinos E.
  • Wainio, John
  • Whitley, Daniel B.
  • Young, C. Edwin


Agricultural trade barriers and producer subsidies inflict real costs, both on the countries that use these policies and on their trade partners. Trade barriers lower demand for trade partners' products, domestic subsidies can induce an oversupply of agricultural products which depresses world prices, and export subsidies create increased competition for producers in other countries. Eliminating global agricultural policy distortions would result in an annual world welfare gain of $56 billion. High protection for agricultural commodities in the form of tariffs continues to be the major factor restricting world trade. In 2000, World Trade Organization (WTO) members continued global negotiations on agricultural policy reform. To help policymakers and others realize what is at stake in the global agricultural negotiations, this report quantifies the costs of global agricultural distortions and the potential benefits of their full elimination. It also analyzes the effects on U.S. and world agriculture if only partial reform is achieved in liberalizing tariffs, tariff-rate quotas (limits on imported goods), domestic support, and export subsidies.

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  • Diao, Xinshen & Elbehri, Aziz & Gehlhar, Mark J. & Gibson, Paul R. & Leetmaa, Susan E. & Mitchell, Lorraine & Nelson, Frederick J. & Nimon, R. Wesley & Normile, Mary Anne & Roe, Terry L. & Shapouri, S, 2001. "Agricultural Policy Reform In The Wto: The Road Ahead," Agricultural Economics Reports 34015, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uerser:34015

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    References listed on IDEAS

    1. Shapouri, Shahla & Rosen, Stacey L., 1999. "Food Security Assessment: Why Countries Are at Risk," Agricultural Information Bulletins 33614, United States Department of Agriculture, Economic Research Service.
    2. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
    3. Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
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    Cited by:

    1. Anderson, Kym, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," WIDER Working Paper Series 025, World Institute for Development Economic Research (UNU-WIDER).
    2. M. Ataman Aksoy & John C. Beghin, 2005. "Global Agricultural Trade and Developing Countries," World Bank Publications, The World Bank, number 7464.
    3. Gervais Jean-Philippe & Rude James I, 2003. "Some Unintended Consequences of TRQ Liberalization," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-18, May.
    4. Gloria O. Pasadilla, 2007. "Preferential trading agreements and agricultural liberalization in East and South-East Asia," STUDIES IN TRADE AND INVESTMENT,in: Studies in Trade and Investment - AGRICULTURAL TRADE - PLANTING THE SEEDS OF REGIONAL LIBERALIZATION IN ASIA, volume 60, pages 75-130 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    5. Fabiosa, Jacinto F. & Beghin, John C. & de Cara, Stephane & Fang, Cheng & Isik, Murat & Matthey, Holger, 2003. "Agricultural Markets Liberalization And The Doha Round," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25875, International Association of Agricultural Economists.
    6. Rude, James & Meilke, Karl D., 2005. "Implications of the July 2004 WTO Framework Agreement for Canadian Agriculture," Commissioned Papers 24159, Canadian Agricultural Trade Policy Research Network.
    7. Frohberg, K. & Hartmann, M. & Weingarten, P. & Winter, E., 2002. "Auswirkungen der EU-Osterweiterung auf die Beitrittsländer - Analyse unter Berücksichtigung der WTO-Verpflichtungen," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 37.
    8. Stout, Jim & Leetmaa, Susan E. & Normile, Mary Anne, 2002. "Evaluating EU Agricultural Policy Reform Using the EU WTO Model," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24941, European Association of Agricultural Economists.
    9. Meilke, Karl D. & Rude, James & Burfisher, Mary E. & Bredahl, Maury E., 2001. "Market Access: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14625, International Agricultural Trade Research Consortium.
    10. Bureau Jean-Christophe & Salvatici Luca, 2004. "WTO Negotiations on Market Access in Agriculture: a Comparison of Alternative Tariff Cut Proposals for the EU and the US," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-35, March.
    11. Devadoss, Stephen, 2002. "Domestic Support And Wto Negotiations From Developing Countries' Perspectives," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36667, Western Agricultural Economics Association.
    12. Roe, Terry L., 2003. "Markets, Trade And The Role Of Institutions In African Development," Conference Papers 28069, University of the Free State, Department of Agricultural Economics.
    13. Keith Walsh & Martina Brockmeier & Alan Matthews, 2005. "Implications of Domestic Support Disciplines for Further Agricultural Trade Liberalization," The Institute for International Integration Studies Discussion Paper Series iiisdp99, IIIS.
    14. James Scott & Rorden Wilkinson, 2012. "Changing of the guard: expert knowledge and ‘common sense’ in the Doha Development Agenda," Brooks World Poverty Institute Working Paper Series 16612, BWPI, The University of Manchester.
    15. Young, Linda M., 2005. "Export Competition Disciplines in the Doha Round," Trade Policy Issues Papers 14573, International Agricultural Trade Research Consortium.
    16. Surabhi Mittal, 2007. "Oecd Agricultural Trade Reforms Impact On India’s Prices And Producers Welfare," Trade Working Papers 22225, East Asian Bureau of Economic Research.


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