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

Author

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  • 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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    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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