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WTO Disciplines on Domestic Support and Market Access in Agri-Food Supply Chains

  • Gervais, Jean-Philippe
  • Larue, Bruno
  • Lapan, Harvey E.

Multilateral negotiations on agriculture in the WTO are making very little progress as developed economies are reluctant to bind trade-distorting domestic support and import tariffs at levels acceptable to developing countries. This paper presents the basic Bagwell-Staiger framework as it relates to agricultural trade negotiations. In its basic version, market access commitments are sufficient to achieve efficient trade agreements. We show that vertical linkages between agricultural goods and processed food commodities may prevent countries to reach an efficient trade agreement. We argue that the features of agricultural supply chains hinder the argument that total discretion over domestic policies is appropriate.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 13019.

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Date of creation: 13 Jan 2009
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Publication status: Published in Canadian Journal of Agricultural Economics, December 2008, vol. 56 no. 4, pp. 429-444
Handle: RePEc:isu:genres:13019
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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