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The Effects of Alternative Proposals for Agricultural Export Subsidies in the Current WTO Round

Author

Listed:
  • Conforti, Piero
  • Velazquez, Beatriz E.
Abstract
The article is aimed at assessing the impact of reducing and/or eliminating EU export subsidies within the next WTO round. The Global Trade Analysis Project (GTAP) model and database are employed to study the effects of the two main proposals put forward on this matter by the EU and the U.S. Results of the simulations confirm the common knowledge that the elimination of EU export subsidies would bring about increases in prices, exports and production for several net exporters of agricultural products. At the same time, such effects are all relatively small in size, particularly the effects on trade, production and welfare, even under the more radical scenario that simulates the elimination of export subsidies. Despite the fact that some net importing countries would suffer from a more expensive import bill, benefits may arise for some of them in terms of incentives to substitute domestic production for imports. This is the case in the Mediterranean region, and to a lesser extent sub-Saharan Africa.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:ecjilt:23848
    DOI: 10.22004/ag.econ.23848
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    File URL: https://ageconsearch.umn.edu/record/23848/files/05010011.pdf
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    References listed on IDEAS

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    1. Conforti, Piero & de Filippis, Fabrizio & Salvatici, Luca, 2002. "The Mid-Term Review Of The Common Agricultural Policy: Assessing The Effects Of The Commission Proposals," Working Papers 14802, National Institute of Agricultural Economics, Italy - INEA, Osservatorio Sulle Politiche Agricole dell'UE.
    2. Chau, Nancy H. & de Gorter, Harry, 2000. "Disentangling The Production And Export Consequences Of Direct Farm Income Payments," 2000 Annual meeting, July 30-August 2, Tampa, FL 21854, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    4. Messerlin, Patrick, 2003. "Agriculture in the Doha Agenda," Policy Research Working Paper Series 3009, The World Bank.
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    6. Kym Anderson & Betina Dimaranan & Joe Francois & Tom Hertel & Bernard Hoekman & Will Martin, 2001. "The Cost of Rich (and Poor) Country Protection to Developing Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 10(3), pages 227-257.
    7. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.
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    9. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
    10. Ruiz, Lilian M. & de Gorter, Harry, 2000. "The Impacts Of Export Subsidy Reduction Commitments In The Agreement On Agriculture," 2000 Annual meeting, July 30-August 2, Tampa, FL 21844, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(4), pages 445-470, December.
    12. von Braun, Joachim & Wobst, Peter & Grote, Ulrike, 2002. ""Development Box" And Special And Differential Treatment For Food Security Of Developing Countries: Potentials, Limitations And Implementation Issues," Discussion Papers 18759, University of Bonn, Center for Development Research (ZEF).
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