Reducing Agriculture Tariffs Versus Domestic Support: What's More Important for Developing Countries?

Bernard Hoekman (), Francis Ng () and Marcelo Olarreaga ()

No 3576, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: High levels of protection and domestic support for farmers in developed countries significantly affect many least developed countries (LDCs), both directly and through the price-depressing effect of agricultural support policies. High tariffs and domestic support may also lower the world price of agricultural products, benefiting net importers. This Paper assesses the impact of reducing these distortionary policies for a sample of 119 countries. We find significant differences in the impact of a 50 percent cut in tariffs and a 50 cut in domestic support for LDCs as compared to non-LDC developing countries. However, for both groups of countries tariff reductions have a much greater positive effect on exports and welfare.

Keywords: agriculture trade; developing countries; subsidies; tariffs; trade negotiations; WTO (search for similar items in EconPapers)
JEL-codes: D58 F13 F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2002-10
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