Liberalising OECD agricultural policies in the uruguay round: Effects on trade and welfare

Rod Tyers, Kym Anderson

Research output: Chapter in Book/Conference paperChapterpeer-review

Abstract

A dynamic, stochastic, multi-commodity model of world food markets is used to estimate the effects of liberalising agricultural policies in industrial countries. The effects on international and domestic prices, on trade volumes and on economic welfare of a phased liberalisation of industrial-country policies between 1988 and 1992 are compared with the effects of a similar hypothetical liberalisation in the early 1980s. The results suggest that, because of the dramatic increase in agricultural protection during the 1980s, the effects of a liberalisation under the Uruguay Round would be, in real terms, more than double those that would have resulted from a similar liberalisation a decade earlier. Major gainers are consumers in Western Europe and Japan and farmers in developing countries. But the cost to tax-payers in Western Europe is also escalating, not to mention the burden on non-agricultural producers in those countries whose competitiveness is reduced by farm policies. These domestic pressures from treasuries and from producers of non-farm products, together with greater international pressure for reform from agricultural-exporting countries, have raised the probability of at least some liberalisation during the Uruguay Round of multilateral trade negotiations.

Original languageEnglish
Title of host publicationWorld Scientific Reference on Asia-pacific Trade Policies (In 2 Volumes)
PublisherWorld Scientific Publishing
Pages403-429
Number of pages27
ISBN (Print)9789813274709
DOIs
Publication statusPublished - 1 Jan 2019

Publication series

NameWorld Scientific Reference on Asia-pacific Trade Policies (In 2 Volumes)

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