Agricultural Trade Reform And the Doha Development Agenda by Will Martin; Kym Anderson

By Will Martin; Kym Anderson

Agricultural exchange reform is important to a good improvement final result from the Doha improvement time table. yet agricultural regulations and the coverage reforms being pondered are fiendishly advanced, and the satan is within the information. Agricultural exchange Reform and the Doha improvement schedule builds up from the fundamental element of the price lists and different safeguard measures, and makes use of this knowledge to supply an research of the big-picture implications of proposed reforms. offering the main whole and recent research of the diversity of agricultural matters below negotiation within the multilateral alternate negotiations underway on this planet alternate association (WTO), this identify is a worthwhile source to policymakers, agricultural inner most region, and lecturers in constructing and assessing the negotiating suggestions.

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Our simulations overstate the benefits of tariff preferences for least developed countries, however, since they ignore the trade-dampening effect of complex rules of origin and the grabbing of much of the rents by developed-country importers. Even if least developed countries were to be losers after correcting for those realities, it remains true that preference-receiving countries could always be compensated for preference erosion through increased aid at relatively small cost to current preference providers, and in the process, other developing countries currently hurt by preferences for least developed countries would enjoy greater access to the markets of reforming developed countries.

In scenarios 1 and 4, the applied global average tariff on agricultural products is cut by roughly one-third, with larger cuts in developed economies, smaller cuts in developing economies, and zero in least developed economies. In scenario 1 there are three tiers for developed economies and four for developing countries, following Harbinson (WTO 2003) but each tier is 10 percentage points higher. Scenario 5 is the same as scenario 4 except that it allows an exemption from the tariff cuts for sensitive and special products.

16). Note: High-income economies include the newly industrialized East Asian economies of Hong Kong (China), Republic of Korea, Singapore, and Taiwan (China) as well as Europe’s transition economies that joined the EU in May 2004. a. 5. b. 5. Agriculture, Trade Reform, and the Doha Agenda 17 Most developing countries gain in our Doha scenarios, and all would if they participated more fully in the reforms. Our simulations of alternative scenarios for possible outcomes of the Doha negotiations show that middle-income countries certainly stand to gain, but so too would poorer developing countries so long as they do not exercise their claims to special and differential treatment in the form of lesser requirements to reform.

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