Blue Box Policy Reform in the Doha Round Negotiations: Effects and China's Position

Jie Cheng, Laping Wu and Richard W. Dawson

China & World Economy, 2008, vol. 16, issue 5, 83-102

Abstract: This paper uses an agricultural trade policy simulation model to quantitatively evaluate the effects of Blue Box policy reform on agricultural production and trade, and further provides specific proposals regarding China's reform position. The results indicate that, if the reform could achieve a reduction in distorting supports in more developed countries, China's total agricultural production would increase, accompanied by a decrease in agricultural imports and a slight increase in exports. In terms of social welfare, producers would gain significantly, consumers would lose and government would not suffer greatly, which is in accordance with current agricultural policies in China. As a core member of G20, China should approve a subsidy level as low as possible required by Blue Box to achieve “substantial reductions in trade‐distorting domestic supports”.

Date: 2008
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https://doi.org/10.1111/j.1749-124X.2008.00131.x

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