The Impacts of WTO Export Subsidy Abolition on the Agri-food Industry in the EU: A Preliminary Assessment

Leena Kerkelä, Heikki Lehtonen and Jyrki Niemi

No 375, Discussion Papers from VATT Institute for Economic Research

Abstract: As a part of agricultural negotiations, the WTO members have agreed to phase out all forms of export subsidies. This study evaluates the current level and commitments of subsidised export quantities and subsidy expenditures of the EU, which is by far the largest user of export subsidies. The effects of removing subsidies are studied by a multi-region general equilibrium model GTAP on world-wide, EU wide and on the level of the Finnish agriculture. The results show decreasing prices and production in the EU for subsidised products especially in dairy, grain and meat production and slight increases in their world market prices. The effects for Finland are magnified compared to the rest of the EU and are seen especially in grains production.

Keywords: Export subsidies; WTO Negotations; CGE Analysis; Environment; Ympäristö; International comparisons; Kansainväliset vertailut; Taxation and Social Transfers; Julkisen talouden rahoitus ja tulonsiirrot (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-agr and nep-int
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