Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The
Using the Food and Agricultural Policy Research Institute (FAPRI) modeling system, we investigate the multilateral removal of border taxes and farm programs and their distortion of world agricultural markets. We find that agricultural and trade distortions have significant terms-of-trade effects. Terms-of-trade effects caused by trade barriers are much larger than those caused by domestic farm programs. World trade is also significantly impacted. Trade expansion is substantial for most commodities, especially dairy, meats, and vegetable oils. Net agricultural and food exporters, such as Brazil, Australia, and Argentina, emerge with expanded exports, whereas net importing countries with limited distortions before liberalization are penalized by higher world markets prices and reduced imports. The United States gains significant export shares in livestock products and imports more dairy products. Without protection and domestic subsidies, the European Union loses many of its livestock and dairy export markets. The increase in world market prices would offset at least a portion of the subsidies foregone by U.S. producers.
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| Date of creation: | Nov 2002 |
| Date of revision: | |
| Handle: | RePEc:ias:fpaper:02-wp317 |
| Contact details of provider: | Postal: 578 Heady Hall, Ames, IA 50011-1070 Phone: (515)294-1183 Fax: (515)294-6336 Web page: http://www.fapri.iastate.edu/ Email: More information through EDIRC
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References listed on IDEAS
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- Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
- Anderson, Kym & Hoekman, Bernard, 1999.
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- Xinshen Diao & Terry Roe & Agapi Somwaru, 2002.
"Developing Country Interests in Agricultural Reforms under the World Trade Organization,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 84(3), pages 782-790.
- Diao, Xinshen & Roe, Terry & Somwaru, Agapi, 2002. "Developing country interests in agricultural reforms under the World Trade Organization," TMD discussion papers 85, International Food Policy Research Institute (IFPRI).
- Stefan Tangermann, 2001. "L'Accord sur l'Agriculture de l'Uruguay Round fonctionne-t-il ?," Economie Internationale, CEPII research center, issue 87, pages 15-44.
- Kennedy, P. Lynn & Brink, Lars & Dyck, John H. & MacLaren, Donald, 2001. "Domestic Support: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14622, International Agricultural Trade Research Consortium.
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