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How Effective are WTO Disciplines on Domestic Support and Market Access for Agriculture?

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Abstract

A new round of trade negotiations under the World Trade Organization (WTO) was launched in 2001. One of the major aims of the Doha Development Round is to reduce agricultural protection and impose greater discipline on domestic agricultural subsidies, particularly those that are the most trade distorting. In this paper we examine whether the proposed WTO modalities for agriculture will actually achieve this aim in Norway, which ranks among the top providers of government assistance for agriculture. Norway has a complex system of farm subsidies buttressed by substantial import protection. The extent to which its agricultural support policies will have to be changed in response to new WTO disciplines provides an important indication of how successful these are likely to be. We find that Norway will probably be able to sustain its current agricultural activity and production levels while staying within the new WTO rules. Following recent practice in some other WTO members, Norway will be able to reduce its notified support without making real changes in some of its programs. However, there will have to be a shift from market price support, which is paid for by consumers through higher food prices, to budgetary support paid by taxpayers and that could generate internal pressures for policy reform.

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  • Blandford, David & Gaasland, Ivar & Garcia, Roberto & Vårdal, Erling, 2009. "How Effective are WTO Disciplines on Domestic Support and Market Access for Agriculture?," Working Papers in Economics 03/09, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2009_003
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    File URL: http://www.uib.no/filearchive/wp-0309_1.pdf
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    1. David Blandford & Ivar Gaasland & Roberto Garcia & Erling Vårdal, 2010. "How Effective are WTO Disciplines on Domestic Support and Market Access for Agriculture?," The World Economy, Wiley Blackwell, vol. 33(11), pages 1470-1485, November.
    2. Godo, Yoshihisa & Takahashi, Daisuke, 2008. "Japan: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 822, International Food Policy Research Institute (IFPRI).
    3. Gaasland, Ivar & Garcia, Robert & Vardal, Erling, 2008. "Norway: Shadow WTO agricultural domestic support notifications," IFPRI discussion papers 812, International Food Policy Research Institute (IFPRI).
    4. Rolf Jens Brunstad & Ivar Gaasland & Erling Vardal, 2005. "Multifunctionality of agriculture: an inquiry into the complementarity between landscape preservation and food security," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(4), pages 469-488, December.
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    Cited by:

    1. Blandford, David & Gaasland, Ivar & Vårdal, Erling, 2014. "GHG abatement welfare cost curves for Norwegian agriculture," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169734, Agricultural Economics Society.
    2. Blandford, David & Gaasland, Ivar & Hassapoyannes, Katharina & Vardal, Erling, 2015. "Policy options for GHG mitigation under autarky: a conceptual and empirical analysis for Norway," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204211, Agricultural Economics Society.
    3. David Blandford & Ivar Gaasland & Roberto Garcia & Erling Vårdal, 2010. "How Effective are WTO Disciplines on Domestic Support and Market Access for Agriculture?," The World Economy, Wiley Blackwell, vol. 33(11), pages 1470-1485, November.
    4. Blandford, David & Gaasland, Ivar & Vardal Erling, 2015. "GHG abatement welfare cost curves for Norwegian agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 211922, International Association of Agricultural Economists.

    More about this item

    Keywords

    WTO; Doha-round; domestic support; market access; partial equilibrium model;

    JEL classification:

    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • 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

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