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Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The

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Abstract

Using the Food and Agricultural Policy Research Institute (FAPRI) modeling system, we investigate the multilateral removal of border taxes and farm programs and their distortion of world agricultural markets. We find that agricultural and trade distortions have significant terms-of-trade effects. Terms-of-trade effects caused by trade barriers are much larger than those caused by domestic farm programs. World trade is also significantly impacted. Trade expansion is substantial for most commodities, especially dairy, meats, and vegetable oils. Net agricultural and food exporters, such as Brazil, Australia, and Argentina, emerge with expanded exports, whereas net importing countries with limited distortions before liberalization are penalized by higher world markets prices and reduced imports. The United States gains significant export shares in livestock products and imports more dairy products. Without protection and domestic subsidies, the European Union loses many of its livestock and dairy export markets. The increase in world market prices would offset at least a portion of the subsidies foregone by U.S. producers.

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  • Bruce A. Babcock & John C. Beghin & Jacinto F. Fabiosa & Stephane De Cara & Amani Elobeid & Cheng Fang & Chad E. Hart & Murat Isik & Holger Matthey & Alexander E. Saak & Karen Kovarik & FAPRI Staff, 2002. "Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The," Center for Agricultural and Rural Development (CARD) Publications 02-wp317, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:02-wp317
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    1. Suwen Pan & Mohamadou Fadiga & Samarendu Mohanty & Mark Welch, 2007. "Cotton In A Free Trade World," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 188-197, January.
    2. Alston, Julian M. & Sumner, Daniel A. & Balagtas, Joseph Valdes & Brunke, Henrich, 2004. "Economic Implications Of The Australia-U.S. Free Trade Agreement For U.S. Dairy Markets And Domestic Dairy Farm Programs," 2004 Annual meeting, August 1-4, Denver, CO 20164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Alston, Julian M. & Balagtas, Joseph Valdes & Brunke, Henrich & Sumner, Daniel A., 2006. "Supply and demand for commodity components: implications of free trade versus the AUSFTA for the US dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 1-22, June.
    4. Fadiga, Mohamadou L. & Mohanty, Samarendu & Pan, Suwen, 2005. "The Impacts of U.S. Cotton Programs on the West and Central African Countries Cotton Export Earnings," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(2), pages 1-11.
    5. Orden, David & Salam, Abdul & Dewina, Reno & Nazli, Hina & Minot, Nicholas, 2006. "The Impact of Global Cotton Markets on Rural Poverty in Pakistan," 2006 Annual meeting, July 23-26, Long Beach, CA 21381, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Fabiosa, Jacinto F. & Beghin, John C. & de Cara, Stephane & Fang, Cheng & Isik, Murat & Matthey, Holger, 2003. "Agricultural Markets Liberalization And The Doha Round," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25875, International Association of Agricultural Economists.
    7. Mohamed Abdelasset Chemingui, 2011. "Welfare Effects From Reforming Agricultural Policies In Rich Countries In A Spatially Small Heterogeneous Agricultural Economy," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 191-213.
    8. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
    9. Balat, Jorge F. & Porto, Guido G., 2005. "The WTO Doha Round, cotton sector dynamics, and poverty trends in Zambia," Policy Research Working Paper Series 3697, The World Bank.
    10. Alexandre Gohin & Patrice Gautier, 2008. "The phasing out of EU agricultural export subsidies : impacts of TWO management schemes," Working Papers hal-01931642, HAL.
    11. Gadanakis, Yiorgos & Baourakis, George & Clapan, Carmen, 2007. "Measuring the impacts of distortions in the European Union cotton sector: a partial equilibrium analysis using the ATPSM model framework," Working Papers 7285, TRADEAG - Agricultural Trade Agreements.
    12. Tonshia Luster & Andrew Barkley, 2011. "The Economic Determinants of the Number of Minority Farmers in the Southeast Region of the United States, 1969-1997," The Review of Black Political Economy, Springer;National Economic Association, vol. 38(1), pages 83-101, March.
    13. Lionel Fontagné, 2003. "Market Access and Domestic Support Measures," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(3), pages 3-10, October.
    14. Author-Name: Jeffrey D. Sachs & John W. McArthur & Guido Schmidt-Traub & Margaret Kruk & Chandrika Bahadur & Michael Faye & Gordon McCord, 2004. "Ending Africa's Poverty Trap," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 117-240.
    15. Balagtas, Joseph Valdes & Coulibaly, Jeanne Y. & Diarra, Ibrahim, 2006. "Import Demand for Dairy Products in Cote d'Ivoire," 2006 Annual meeting, July 23-26, Long Beach, CA 21432, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Pan, Suwen & Welch, Mark & Mohanty, Samarendu & Fadiga, Mohamadou L. & Ethridge, Don E., 2005. "Assessing the Impacts of the Chinese TRQ System and U.S. Subsidies on the World Cotton Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-16.
    17. Poonyth, Daneswar & Sharma, Ramesh & Konandreas, Panos A., 2004. "The impact of the WTO agricultural negotiating modalities on Southern African Development Community countries," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(3), pages 1-21, September.
    18. Conforti, Piero & Velazquez, Beatriz E., 2004. "The Effects of Alternative Proposals for Agricultural Export Subsidies in the Current WTO Round," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-26.
    19. Alston, Julian M. & Sumner, Daniel A. & Vosti, Stephen A., 2005. "The Effects of Agricultural Research and Farm Subsidy Policies on Human Nutrition and Obesity," 2005 Annual meeting, July 24-27, Providence, RI 19196, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. John C. Beghin & Ataman Aksoy, 2003. "Agricultural Trade and the Doha Round: Lessons from Commodity Studies," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 03-bp42, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    21. Lee, Young-Jae, 2008. "Theoretical Examination of the Conditions of Best Management Practices Adoption and the Easing of Trade Distortion for Sugar," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6826, Southern Agricultural Economics Association.
    22. Ben Shepherd, 2005. "The Impact of US Subsidies on the World Cotton Market: A Reassessment," International Trade 0511012, University Library of Munich, Germany.
    23. Blasco, Lorea Barron & Devadoss, Stephen & Stodick, Leroy, 2006. "The Doha Round Declaration on Cotton: A Catalyst for Poverty Reduction in Africa?," 2006 Annual meeting, July 23-26, Long Beach, CA 21161, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. Pan, Suwen & Hudson, Darren & Ethridge, Don E., 2009. "The Influence Of Market Structure On The Impacts Of Domestic Subsidies On International Cotton Marekts," 2009 Conference, August 16-22, 2009, Beijing, China 51196, International Association of Agricultural Economists.

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