The Doha Talks and the Bargaining Surplus in Agriculture
William Hartley Furtan,
A. Guzel and
Kostas Karantininis
Estey Centre Journal of International Law and Trade Policy, 2007, vol. 08, issue 2, 17
Abstract:
The Doha Round has been slow to achieve a reduction in the level of agricultural protection. This remains the case notwithstanding the substantial economic benefits that would arise from a more liberal agricultural trading regime. We provide one explanation for this slowness using a simple bargaining model. We demonstrate that the bargaining countries received a substantial fiscal gain from reducing government expenditures in the run-up to the Uruguay Round. This fiscal pressure was sufficient to block rent seekers who wanted farm payments to continue. Since the Uruguay Round these fiscal constraints have been reduced and the same pressure to reach a bargain and control rent-seeking behaviour is not present in the Doha Round.
Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ecjilt:7706
DOI: 10.22004/ag.econ.7706
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