Reducing Agricultural Tariffs Versus Domestic Support

Reducing Agricultural Tariffs Versus Domestic Support PDF

Author: Bernard M. Hoekman

Publisher: World Bank Publications

Published: 2003

Total Pages: 48

ISBN-13:

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High levels of protection and domestic support for farmers in industrial countries significantly affect many developing countries, both directly and through the price-depressing effect of agricultural support policies. High tariffs--in both rich and poor countries--and domestic support may also lower the world price of agricultural products, benefiting net importers. Hoekman, Ng, and Olarreaga assess the impact of reducing tariffs and domestic support in a sample of 119 countries. Least developed countries (LDCs) are disproportionately affected by agricultural support policies. More than 18 percent of LDC exports are subject to domestic support in at least one World Trade Organization (WTO) member, as compared to only 9 percent of their imports. For other developing countries the figures are around 4 percent for both their exports and imports. So, the prevailing pattern of trade suggests the world price-reducing effect of agricultural domestic support policies may induce a welfare loss in LDCs. The authors develop a simple partial equilibrium model of global trade in commodities that benefit from domestic support in at least one WTO member. The simulation results suggest there will be large differences between LDCs and other developing economies in terms of the impact of a 50 percent cut in tariffs as compared to a 50 percent cut in domestic support. Developing countries as a group would suffer a welfare loss from a cut in support, while LDCs would experience a small gain. For both groups of countries, tariff reductions by WTO members--including own liberalization--will have a positive effect on welfare. The results show both the importance of focusing on tariffs as well as subsities, and the need for complementary actions to allow a domestic supply response to occur in developing countries if world prices rise. This paper--a product of Trade, Development Research Group--is part of a larger effort in the group to analyze the effects of trade-related policies on developing countries.

Agricultural Trade Liberalization and the Least Developed Countries

Agricultural Trade Liberalization and the Least Developed Countries PDF

Author: Niek Koning

Publisher: Springer Science & Business Media

Published: 2007-05-07

Total Pages: 264

ISBN-13: 9781402060854

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Developing countries as a group stand to gain very substantially from trade reform in agricultural commodities. Agricultural Trade Liberalization and the Least Developed Countries is the first book to address important questions relating to this subject. The authors are world renowned experts on international trade and development and they address a very important and timely issue.

Reforming Agricultural Trade for Developing Countries

Reforming Agricultural Trade for Developing Countries PDF

Author: John Nash

Publisher: World Bank Publications

Published: 2006-11-09

Total Pages: 330

ISBN-13: 0821364979

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In the ongoing Doha Development Round of World Trade Organization negotiations, developing countries have had much greater leverage, due at least in part to their large and growing share of world trade. But will the increased influence of developing countries translate into a final agreement that is truly more development-friendly? What would be key ingredients in such a final outcome of the negotiations, and what would the developing countries really get out of it. This two volume set seeks to answer these questions. This volume (Volume 1) is issues-oriented. It takes up some key questions in the negotiations, setting the stage with a historical overview of the Doha Development Agenda to help identify issues of most significance to developing countries, and then explores select issues in greater depth. Volume 2 addresses the question of how a development-friendly outcome to the talks would affect developing countries by quantifying the impact of multilateral trade reform. It presents several different approaches to modeling the effects of the outcome of negotiations, and then investigates why these (and other) modeling efforts produce such divergent results. Aimed at policymakers and stakeholders, this two-volume effort puts into the public domain important analytical work that will improve the chance for a pro-development outcomes of the Doha round negotiations.

Agricultural Trade Policy

Agricultural Trade Policy PDF

Author: Timothy Edward Josling

Publisher: Peterson Institute

Published: 1998

Total Pages: 158

ISBN-13: 9780881322569

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The Uruguay Round trade negotiations marked a historic turning point in the reform of agricultural trade. The Uruguay Round Agreement on Agriculture (URAA) replaced nontariff barriers with bound tariffs, curbed export subsidies, and codified domestic agricultural programs. Unfortunately, the URAA bound many of the tariffs that replaced nontariff barriers too high, it legitimized export subsidies, and it left the domestic farm policies of the major industrial countries largely untouched. Fortunately, regional trade institutions have also begun to grapple with agricultural trade liberalization. Agriculture was featured in the Mercosur agreement, in recent agreements between the European Union and the countries of Central and Eastern Europe, and in the North American Free Trade Area (NAFTA). Plans for broad supraregional trade structures, such as the Asia Pacific Economic Cooperation (APEC) forum and the Free Trade Area of the Americas (FTAA), have also dealt with the inclusion of agricultural trade. Meanwhile, in developing and middle-income countries, unilateral agricultural policy reforms have been part of recent economic policy changes. However, in the industrial countries, agricultural policy reform has languished in the face of much domestic opposition. But the reform of the European Union's Common Agricultural Policy (CAP) in 1992 and the 1996 Farm Bill in the United States seems to have ushered in a new era of relations between government and agricultural groups. The author points out ways that multilateral, regional, and unilateral paths could be coordinated to liberalized agricultural trade. He proposes a set of multilateral talks that would benefit from agricultural reform at all levels and complete the job begun at the Uruguay Round.

The Political Economy of the 2014-2020 Common Agricultural Policy

The Political Economy of the 2014-2020 Common Agricultural Policy PDF

Author: Johan F.M. Swinnen

Publisher: Rowman & Littlefield

Published: 2015-07-30

Total Pages: 597

ISBN-13: 1783484853

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After five years of debates, consultations and negotiations, the European institutions reached an agreement in 2013 on the Common Agricultural Policy (CAP) for the 2014-2020 period. The outcome has major implications for the EU’s budget and farmers’ incomes, but also for Europe’s environment, its contribution to global climate change and to food security in the EU and in the world. It was decided to spend more than €400 billion during the rest of the decade on the CAP. The official claims are that the new CAP will take better account of society's expectations and lead to far-reaching changes by making subsidies fairer and ‘greener’ and making the CAP more efficient. It is also asserted that the CAP will play a key part in achieving the overall objective of promoting smart, sustainable and inclusive growth. However, there is significant scepticism about these claims and disappointment with the outcome of the decision-making, the first in which the European Parliament was involved under the co-decision procedure. In contrast to earlier reforms where more substantive changes were made to the CAP, the factors that induced the policy discussions in 2008-13 and those that influenced the decision-making did not reinforce each other. On the contrary, they sometimes counteracted one another, yielding an ‘imperfect storm’ as it were, resulting in more status quo and fewer changes. This book discusses the outcome of the decision-making and the factors that influenced the policy choices and decisions. It brings together contributions from leading academics from various disciplines and policy-makers, and key participants in the process from the European Commission and the European Parliament.

Agriculture Investment Sourcebook

Agriculture Investment Sourcebook PDF

Author: World Bank

Publisher: World Bank Publications

Published: 2005-04-08

Total Pages: 536

ISBN-13: 0821383523

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Investing to promote agricultural growth and poverty reduction is a central pillar of the World Bank's current rural strategy, 'Reaching the Rural Poor' (2003). This 'Sourcebook' addresses how to implement the rural strategy, by sharing information on investment options and identifying innovative approaches that will aid the design of future lending programs for agriculture. It provides generic good practices and many examples that demonstrate investment in agriculture can provide rewarding and sustainable returns to development efforts. It is divided into eleven self-contained modules. Each module contains three different types of subunits that can also be stand-alone documents: I. Module Overview II. Agricultural Investment Notes III. Innovative Activity Profiles. The stand-alone nature of the subunits allows flexibility and adaptability of the material. Selected readings and web links are also provided for readers who seek more in-depth information. The 'Sourcebook' draws on a wide range of experiences from donor agencies, governments, institutions, and other groups active in agricultural development. It is an invaluable reference tool for policy makers, professionals, academics and students, and anyone with an interest in agricultural investments.

The Role of Trade in Ending Poverty

The Role of Trade in Ending Poverty PDF

Author: World Bank Group

Publisher:

Published: 2015

Total Pages: 0

ISBN-13: 9789287040138

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Trade will have an important role at the global level in generating the growth necessary for reducing extreme poverty to 3 percent and boosting prosperity for the poorest 40 percent by 2030. To identify the most important challenges that exist in maximizing the positive impact of trade on poverty, we need to understand who the poor are, where they are, and what economic activities they undertake. To this end, the study highlights particularly relevant dimensions of poverty: rural poverty in remote areas, informality, fragile and conflict situations, and women. For each of these issues, this study considers the main traderelated barriers and challenges, along with policy responses to address them. It shows the importance of the multilateral trading system and of the Doha Round, as well as the important role of the WBG and WTO in promoting coherence and implementing trade policies in a way that delivers the greatest possible benefits for the poor.

Agricultural Subsidies in the WTO Green Box

Agricultural Subsidies in the WTO Green Box PDF

Author: Ricardo Meléndez-Ortiz

Publisher: Cambridge University Press

Published: 2009-12-03

Total Pages: 706

ISBN-13: 0521519691

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Growing evidence suggests that 'green box' farm subsidies may in fact affect production and trade, harm farmers in developing countries and cause environmental damage. This book brings together new research and analysis examining the relationship between green box subsidies and sustainable development goals, and explores options for future reform.