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Agricultural trade reform and poverty reduction in developing countries

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  • Kym Anderson

Abstract

This paper offers an economic assessment of the opportunities and challenges provided by the WTO’s Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty, economic growth and trade, it reports modelling results showing that farm product markets remain the most costly of all goods market distortions in world trade. It focuses on what such reform might mean for developing countries both without and with their involvement in the multilateral trade negotiations. What becomes clear is that if those countries want to maximize their benefits from the Doha round, they need also to free up their own domestic product and factor markets so their farmers are better able to take advantage of new market-opening opportunities abroad. Other concerns of low-income countries about farm trade reform also are addressed: whether there would be losses associated with tariff preference erosion, whether food-importing countries would suffer from higher food prices in international markets, whether China’s WTO accession will provide an example of trade reform aggravating poverty via cuts to prices received by Chinese farmers, and the impact on food security and poverty alleviation.

Suggested Citation

  • Kym Anderson, 2004. "Agricultural trade reform and poverty reduction in developing countries," The Institute for International Integration Studies Discussion Paper Series iiisdp014, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp014
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    Cited by:

    1. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    2. Alexander Schejtman & Julio A. Berdegué, 2006. "El Impacto Social de la Integración Regional en América Latina Rural," IDB Publications (Working Papers) 2327, Inter-American Development Bank.
    3. Alexander Schejtman & Julio A. Berdegué, 2006. "El Impacto Social de la Integración Regional en América Latina Rural," IDB Publications (Working Papers) 9125, Inter-American Development Bank.
    4. Carlos Felipe Jaramillo & Daniel Lederman & Maurizio Bussolo & David Gould & Andrew Mason, 2006. "Challenges of CAFTA : Maximizing the Benefits for Central America," World Bank Publications, The World Bank, number 7127, December.
    5. Valenzuela, Ernesto & Hertel, Thomas W., 2006. "Poverty Vulnerability and Trade Policy: Are the Likely Impacts Discernable?," 2006 Annual meeting, July 23-26, Long Beach, CA 21397, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Schure, Paul & van Kooten, G. Cornelis & Wang, Yichuan, 2007. "Challenges for Less Developed Countries: Agricultural Policies in the EU and the US," Working Papers 37047, University of Victoria, Resource Economics and Policy.
    7. Nadia Belhaj Hassine & Magda Kandil, 2009. "Trade liberalisation, agricultural productivity and poverty in the Mediterranean region," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(1), pages 1-29, March.
    8. Alan Matthews, 2015. "Impact of EU's agricultural and fisheries policies on the migration of third country nationals to the EU," Trinity Economics Papers tep0715, Trinity College Dublin, Department of Economics.

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    WTO; agricultural protection; trade liberalization; poverty alleviation;
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