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

Author

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

Abstract

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.

Suggested Citation

  • Gervais, Jean-Philippe & Larue, Bruno & Lapan, Harvey E., 2009. "WTO Disciplines on Domestic Support and Market Access in Agri-Food Supply Chains," Staff General Research Papers Archive 13019, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:13019
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    References listed on IDEAS

    as
    1. Blandford, David & Boisvert, Richard N., 2002. "Non-Trade Concerns And Domestic/International Policy Choice," Working Papers 14615, International Agricultural Trade Research Consortium.
    2. Lee, Gea M., 2007. "Trade agreements with domestic policies as disguised protection," Journal of International Economics, Elsevier, vol. 71(1), pages 241-259, March.
    3. Josh Ederington, 2002. "Trade and Domestic Policy Linkage in International Agreements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1347-1368, November.
    4. Kyle Bagwell & Robert W. Staiger, 2001. "Domestic Policies, National Sovereignty, and International Economic Institutions," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 519-562.
    5. Wilfrid Legg, 2003. "Presidential Address Agricultural Subsidies: Measurement and Use in Policy Evaluation," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 175-201.
    6. Kyle Bagwell & Robert W. Staiger, 2006. "Will International Rules on Subsidies Disrupt the World Trading System?," American Economic Review, American Economic Association, vol. 96(3), pages 877-895, June.
    7. Anne Krueger, 1999. "The Developing Countries and the Next Round of Multilateral Trade Negotiations," The World Economy, Wiley Blackwell, vol. 22(7), pages 909-932, September.
    8. Christian Broda & Nuno Limao & David E. Weinstein, 2008. "Optimal Tariffs and Market Power: The Evidence," American Economic Review, American Economic Association, vol. 98(5), pages 2032-2065, December.
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    10. John C. Beghin & Ataman Aksoy, 2003. "Agricultural Trade and the Doha Round: Lessons from Commodity Studies," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-bp42, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    11. Robert W. Staiger & Kyle Bagwell, 1999. "An Economic Theory of GATT," American Economic Review, American Economic Association, vol. 89(1), pages 215-248, March.
    12. Jean-Philippe Gervais & Harvey E. Lapan, 2001. "Optimal Production Tax and Quota under Time Consistent Trade Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 921-933.
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    14. Lapan, Harvey E, 1988. "The Optimal Tariff, Production Lags, and Time Consistency," American Economic Review, American Economic Association, vol. 78(3), pages 395-401, June.
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    16. Gervais, Jean-Philippe & Lapan, Harvey E., 2002. "Time consistent export quotas in an oligopolistic world market," Journal of International Economics, Elsevier, vol. 56(2), pages 445-463, March.
    17. Anderson, Kym & Hoekman, Bernard & Strutt, Anna, 2001. "Agriculture and the WTO: Next Steps," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 192-214, May.
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    More about this item

    Keywords

    domestic support; market access; agri-food trade negotiations; vertical linkages; uncertainty;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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