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

Marcelo Olarreaga and Francis Ng
Authors registered in the RePEc Author Service: Bernard Hoekman

No 3576, CEPR Discussion Papers from Centre for Economic Policy Research

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; Wto; Trade negotiations; Tariffs; Subsidies; Developing countries (search for similar items in EconPapers)
JEL-codes: D58 F13 F14 (search for similar items in EconPapers)
Date: 2002-10
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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