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The consequences of agricultural trade liberalization for developing countries: distinguishing between genuine benefits and false hopes

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  • Jean-Christophe Bureau
  • Sébastien Jean, Alan Matthews

Abstract

Recent analyses suggest that the impact of agricultural trade liberalization on developing countries will be very uneven. Some simulations suggest that the effects of agricultural trade liberalization will be small, overall, and are likely to be negative for a significant number of developing countries. The Doha Round focuses on tariff issues, but these countries currently have practically duty-free access to European and North American markets under preferential regimes. Multilateral liberalization will erode the benefits of these preferences, which are presently rather well utilized in the agricultural sector. The main obstacles to the exports of sub-Saharan African and least developed countries appear to be in the non-tariff area (sanitary, phytosanitary standards) which increasingly originate from the private sector and are not dealt with under the Doha framework (traceability requirements, etc.). An agreement in Doha is unlikely to solve these problems and open large markets for the poorest countries. It might even increase their handicap relative to developing countries that are more advanced from a technical and commercial standpoint. While this is not an argument to give up multilateral liberalization, a more specific and differentiated treatment should be considered in WTO rules, and corrective measures should be implemented.

Suggested Citation

  • Jean-Christophe Bureau & Sébastien Jean, Alan Matthews, 2005. "The consequences of agricultural trade liberalization for developing countries: distinguishing between genuine benefits and false hopes," The Institute for International Integration Studies Discussion Paper Series iiisdp073, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp073
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    References listed on IDEAS

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    1. Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
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    Cited by:

    1. Leonid Azarnert, 2014. "Agricultural Exports, Tariffs and Growth," Open Economies Review, Springer, vol. 25(4), pages 797-807, September.
    2. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2006. "Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?," Working Papers 18870, TRADEAG - Agricultural Trade Agreements.
    3. Rehdanz, Katrin & Berrittella, Maria & S.J. Tol, Richard & Zhang, Jian, 2008. "The Impact of Trade Liberalization on Water Use: A Computable General Equilibrium Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 631-655.
    4. Zahrnt, Valentin, 2008. "Reforming the EU's Common Agricultural Policy: Health Check, Budget Review, Doha Round," ECIPE Policy Briefs 47838, European Centre for International Political Economy (ECIPE).
    5. Antimiani, Alessandro & Salvatici, Luca, 2005. "EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework," Working Papers 18856, TRADEAG - Agricultural Trade Agreements.
    6. Alan Matthews & Tom Giblin, 2006. "Policy Coherence, Agriculture and Development," The Institute for International Integration Studies Discussion Paper Series iiisdp112, IIIS.
    7. Alan Matthews & Hannah Chaplin & Thomas Giblin & Marian Mraz, 2007. "Strengthening Policy Coherence for Development in Agricultural Policy: Policy Recommendations to Irish Aid," The Institute for International Integration Studies Discussion Paper Series iiisdp188, IIIS.
    8. Sulewski, Piotr & Kłoczko-Gajewska, Anna, 2014. "Farmers’ risk perception, risk aversion and strategies to cope with production risk: an empirical study from Poland," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), December.
    9. Alessandro Antimiani & Piero Conforti & Luca Salvatici, 2008. "Measuring Restrictiveness of Bilateral Trade Policies: A Comparison between Developed and Developing Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 207-224, July.
    10. Urban, Kirsten & Jensen, Hans G. & Brockmeier, Martina, 2016. "How decoupled is the Single Farm Payment and does it matter for international trade?," Food Policy, Elsevier, vol. 59(C), pages 126-138.
    11. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2005. "Concessions and Exemptions for Developing Countries in the Agricultural Negotiations: The Role of the Special and Differential Treatment," Working Papers 18858, TRADEAG - Agricultural Trade Agreements.
    12. Franck Viroleau, 2015. "The Evolution of Gender Wage Inequality in Senegal Following the Economic Partnership Agreements," EconomiX Working Papers 2015-10, University of Paris Nanterre, EconomiX.
    13. Jean-Christophe Bureau & Louis-Pascal Mahé, 2009. "Cap Payments after 2013 and Rural Public Goods," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    14. Alan Matthews & Jean-Christophe Bureau, 2005. "EU Agricultural Policy: What Developing Countries Need to Know," The Institute for International Integration Studies Discussion Paper Series iiisdp91, IIIS.
    15. Federica DeMaria & Sophie Drogué & Alan Matthews, 2008. "Agro-Food Preferences in the EU's GSP Scheme: An Analysis of Changes Between 2004 and 2006," Development Policy Review, Overseas Development Institute, vol. 26(6), pages 693-712, November.
    16. Mia Mikic, 2006. "Agricultural Trade Liberalization: Time to Close Windows of Exception," STUDIES IN TRADE AND INVESTMENT,in: Asia-Pacific Trade and Investment Review, volume 2, chapter 4, pages 71-91 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    17. Nyhodo, Bonani & Punt, Cecilia & Vink, Nick, 2009. "The potential impact of the Doha Development Agenda on the South African economy: liberalising OECD agriculture and food trade," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(1), March.
    18. Sulewski, Piotr & Czekaj, Stefania, 0. "Climate and institutional change versus expected economic performance of agricultural holdings," Problems of Agricultural Economics, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    19. Uttam Kumar Deb, 2006. "Rules of Origin and Non-Tariff Barriers in Agricultural Trade: Perspectives from Bangladesh and Cambodia," Working Papers 1206, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

    More about this item

    Keywords

    Agricultural Trade; Liberalization; WTO;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F10 - International Economics - - Trade - - - General

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