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Groundnut trade liberalization: Could the South help the south?

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  • Beghin, John
  • Diop, Ndiame
  • Matthey, Holger
Abstract
This paper analyzes policies affecting global groundnut-products markets. The new US groundnut policy is now a minor source of distortion in world markets where India and China stand out as the major distorters. We analyze and quantify the effects of groundnut-products trade liberalization on consumer welfare and producer income. Our analysis shows that African exporters would gain significantly from reductions in protection and subsidies in India, and to a lesser extent, China, although China’s exports of food-quality groundnuts would expand dramatically. Net-importing OECD countries would suffer from higher world prices. The paper draws direct implications for the Doha trade negotiations.

Suggested Citation

  • Beghin, John & Diop, Ndiame & Matthey, Holger, 2006. "Groundnut trade liberalization: Could the South help the south?," ISU General Staff Papers 200601010800001368, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200601010800001368
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    References listed on IDEAS

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    1. Badiane, Ousmane & Kinteh, Sambouh, 1994. "Trade pessimism and regionalism in African countries: the case of groundnut exporters," Research reports 97, International Food Policy Research Institute (IFPRI).
    2. Gary Adams & Patrick Westhoff & Brian Willott & Robert E. Young, 2001. "Do “Decoupled” Payments Affect U.S. Crop Area? Preliminary Evidence from 1997–2000," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1190-1195.
    3. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "How Will Agricultural Trade Reforms in High-Income Countries Affect the Trading Relationships of Developing Countries?," Staff General Research Papers Archive 10665, Iowa State University, Department of Economics.
    4. John Beghin & Jean-Christophe Bureau & Sophie Drogue, 2004. "Calibration of incomplete demand systems in quantitative analysis," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 839-847.
    5. Thurman, Walter N. & Chvosta, Jan & Brown, Blake A. & Rucker, Randal R., 2003. "The End Of Supply Controls: The Economic Effects Of Recent Change In Federal Peanut Policy," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35041, Southern Agricultural Economics Association.
    6. John C. Beghin & Holger Matthey, 2003. "Modeling World Peanut Product Markets: A Tool for Agricultural Trade Policy Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 03-wp332, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(3), pages 263-284, October.
    8. Akobundu, Eberechukwu & Norton, George W. & Gaye, Matar & Bertelsen, Michael, 1998. "Farm-Household Analysis Of Policies Affecting Peanut Production In Senegal," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20887, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Rucker, Randal R & Thurman, Walter N, 1990. "The Economic Effects of Supply Controls: The Simple Analytics of the U.S. Peanut Program," Journal of Law and Economics, University of Chicago Press, vol. 33(2), pages 483-515, October.
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    11. Diop, Ndiame & Beghin, John & Sewadeh, Mirvat, 2004. "Groundnut policies, global trade dynamics, and the impact of trade liberalization," Policy Research Working Paper Series 3226, The World Bank.
    12. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2004. "Agricultural Tariffs or Subsidies: Which Are More Important for Developing Economies?," The World Bank Economic Review, World Bank, vol. 18(2), pages 175-204.
    13. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
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    2. Agyekum, Michael & Jolly, Curtis M., 2017. "Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 114-128.

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