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The Relative Importance of Global Agricultural Subsidies and Tariffs, Revisited

Author

Listed:
  • Anderson, Kym
  • Corong, Erwin
  • Strutt, Anna
  • Valenzuela, Ernesto

Abstract

Over the past three decades, tariff protection to farmers has fallen and partly been replaced by domestic support, whilst support for farmers in some emerging economies has grown. Against that backdrop, this paper provides new estimates of national economic impacts of global agricultural tariffs and domestic supports. Using the latest global economywide GTAP (Global Trade Analysis Project) model calibrated to 2017, we simulate (a) the removal of food and agricultural domestic supports and agri-food tariffs and (b) the removal also of tariffs on imports of non-agricultural goods. We find that agricultural support policies are still an important part of the global welfare cost of all goods’ trade-restrictive policies (albeit only half as costly as in 2001), and tariffs still dominate the global welfare cost of all farm-support programs. That farm support could be re-instrumented to relieve natural resource and environmental stresses, boost food and nutrition security, and alleviate poverty and income inequality.

Suggested Citation

  • Anderson, Kym & Corong, Erwin & Strutt, Anna & Valenzuela, Ernesto, 2023. "The Relative Importance of Global Agricultural Subsidies and Tariffs, Revisited," CEPR Discussion Papers 18099, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:18099
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    Cited by:

    1. is not listed on IDEAS
    2. Riaan Rossouw & Martin Cameron & Wim Naudé, 2026. "Beyond Retaliation: South Africa Can Effectively Counter Trump's Trade Shocks," CeBER Working Papers 2026-01, Centre for Business and Economics Research (CeBER), University of Coimbra.
    3. Kym Anderson & Roehlano Briones, 2025. "Philippines agricultural protection and insulation in international perspective," Departmental Working Papers 2025-12, The Australian National University, Arndt-Corden Department of Economics.
    4. M. Javed Idrisi & Ruchi Gupta & Ramapati Maurya & Kushal Lalwani & Dawit Beza, 2025. "Modeling the dynamics of Indian exports, US tariffs, and competitiveness," Future Business Journal, Springer, vol. 11(1), pages 1-16, December.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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